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Japan's ANA negotiating $2.8 bln state bank loan to help with virus impact - sources

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TOKYO — ANA Holdings Inc is seeking a 300 billion yen ($2.8 billion) credit line from the Development Bank of Japan (DBJ) to help the airline cope with the business impact of the coronavirus outbreak, sources familiar with the matter said.

The airline is also working with private banks to bring forward 100 billion yen in borrowing that had been scheduled for June, according to the sources.

Expecting the coronavirus impact to last more than a year, the company is seeking to establish credit lines of 1 trillion yen with government-related banks and 300 billion yen with private banks, two sources familiar with the matter said.

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Asked about the credit line negotiations, an ANA spokesperson said: “We are working to strengthen cash management. It is true that we are considering borrowing, but we can not comment on the amount and other details.”

Japan has blocked travel or imposed quarantines on overseas travelers from many countries to try to stem the contagion of the virus that has killed more than 53,000 worldwide.

Finance Minister Taro Aso said on Tuesday ANA was a backbone of the Japanese economy and the government would consider loans to the airline in cooperation with private financial institutions.

ANA’s bookings in April are down about 80% on international flights and 60% on domestic flights.

($1 = 108.5400 yen) (Reporting by Maki Shiraki Yoshifumi Takemoto; Writing by Rocky Swift; Editing by Mark POtter)

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