NAGOYA, Japan — Toyota Financial Services Corp., the financial arm of Toyota Motor Corp., has asked the government-backed
Japan Bank for International Cooperation for some 200 billion yen in loans to
help fund its operations in the United States, according to Kyodo News International.
The financing unit has requested
the official credit as even firms with high levels of creditworthiness face
problems in taking out loans from private-sector lenders under the global
financial crisis, Toyota
sources said Tuesday.
The Toyota subsidiary is taking advantage of an
emergency financing facility recently created by JBIC to help Japanese firms
operating abroad that are confronting fundraising difficulties, they said.
Toyota Financial Services, a wholly owned subsidiary of the biggest Japanese carmaker, has become the first company in the Japanese auto industry whose plan to use the financing facility has been made public.
In the U.S., financial
institutions are increasingly reluctant to provide credit to businesses.
Toyota Financial Services has been
providing auto loans in various parts of the world. Finance Minister Kaoru Yosano said
Tuesday the government will provide $5 billion from its foreign exchange
reserves of $1 trillion later this month to Japanese firms through JBIC.
"As an unusual and
extraordinary measure, we will lend funds from foreign reserves to JBIC so that
the money can supplement the bank's fund-providing activities" and be
extended to Japanese companies, he said.