TOKYO - A turnaround fund backed by the Japanese government plans to offer 700 billion yen ($7.6 billion) in investment and loans to Japan Airlines in a bailout of the ailing carrier, Kyodo news said.

The turnaround fund, called the Enterprise Turnaround Initiative Corp of Japan (ETIC), plans to offer about 300 billion yen in capital and establish a 400 billion yen credit line, Kyodo said, without citing sources.

The ETIC will ask financial institutions to forgive about 300 billion yen in debt, Kyodo said. (Editing by Hans Peters)