Sompo Japan Insurance to Cover Aircraft Financing

Economy

Tokyo, June 26 (Jiji Press)--Sompo Japan Nipponkoa Insurance Inc. said Wednesday it has established Japan's first insurance scheme to guarantee loans that airlines take out to buy aircraft.

The scheme will make it easier for regional banks to participate in airline financing because risks will be reduced.

Sompo Japan will pay loans and interest to lenders if the borrower airline operators become unable pay due to bankruptcy or other adverse event.

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