Updated from 1:10 a.m. EST
confirmed its financing unit is in talks with a Japanese government-backed bank on possible lending.
The news was first reported by
. The reports said the financial unit may ask for 200 billion ($2.05 billion) in loans.
Toyota Financial Services is in talks with state-owned Japan Bank for International Cooperation, said Toyota Financial spokesman Toshiaki Kawai without confirming the timing or amount,
also confirmed the reports. Toyota said no details had been decided.
The Japan Bank for International Cooperation declined comment on the reports, saying it doesn't comment on individual company matters. The bank was set up last year to help cash-strapped Japanese businesses. Some companies have been struggling for cash ahead of the fiscal year ending March 31.
The Finance Ministry said Tuesday it will provide an additional $5 billion from its foreign reserves this month to the Japan Bank for International Cooperation to make sure there is ample cash available for needy businesses. Tokyo has about $1 trillion in foreign reserves.
Finance Minister Kaoru Yosano also said the ministry stands ready to raise the money pool available for lending in yen from 800 billion yen now to 1.2 trillion yen to help companies ride out the deepening global slump.
Japanese automaker Toyota is forecasting its first net loss in 59 years this fiscal year because of a slump in global sales and a stronger yen.
Toyota, which makes the Camry sedan and the Prius hybrid, had been growing solidly before the U.S. financial crisis hit last year.
Its projected red ink for the fiscal year through March would mark its first such annual net loss since 1950, and a sharp contrast from the record 1.72 trillion yen profit it racked up the previous year.
Toyota is still faring better than
, which have received $17.4 billion in emergency loans from the U.S. government, and asked for an additional $21.6 billion in aid last month.
has said that it is considering various types of government aid, but it declined to say Tuesday whether it was requesting for Japan Bank for International Cooperation loans. Nissan has forecast a 265 billion yen net loss for the fiscal year through March.
This article was written by a staff member of TheStreet.com. The Associated Press contributed to this report.