Tokyo Electric Power Co. is set to receive a government bailout that may cost as much as 11 trillion yen ($137 billion) after the Fukushima nuclear disaster, the largest in Japan since the rescue of the banking industry in the 1990s.
Japan's government included 2 trillion yen in this year's budget for the Nuclear Damage Liability Facilitation Fund, the bailout vehicle for the utility known as Tepco. Part of that allocation can be used for the purchase of a stake in Tepco being considered by the government. The government plans to budget 4 trillion yen in the next fiscal year and has issued 5 trillion yen of so called delivery bonds, which the state fund can cash in for financial aid to Tepco. (Bloomberg)
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