Japan plans to set up a government-backed insurance fund to put money into Tokyo Electric Power and pay compensation stemming from the disaster at its Fukushima Daiichi nuclear plant, the Nikkei newspaper said. Aimed at saving Tokyo Electric from collapse, the plan would have the state initially shoulder the massive compensation costs, which the power company would then repay over several years via special dividends, the paper said.
Asia's largest utility, also known as TEPCO, has yet to determine how much it will have to pay residents and business near the Fukushima plant, who were forced to evacuate after the March 11 earthquake and tsunami caused deadly radiation leaks. "The bottom line is, TEPCO is too big to fail," said Jason Rogers, a credit analyst at Barclays Capital in Singapore.
Comments
Comments are closed for this article.