Overruling political opposition, Japanese PM Kan approves a compensation to victims. A key feature is that TEPCO's compensation to victims won't be capped,nor will the amount of public financing support available to the company.
if you read below you will see what you're referring to are LOANS. this is not liability that the government is taking on, the government is only backing the loans in case tepco defaults...this is all an effort to prevent bankrtupcy. a good thing for sure, but they still have to pay every red cent back. the banks may have to take a haircut as well. you've posted this twice now. are you looking for a different response the second time?
The government came up with the support plan at the utility’s request, as Tepco said it was facing financing problems as it faced billions of dollars worth of compensation to businesses affected by radiation released from its Fukushima Daiichi nuclear-power plant.
The government will support Tepco “while aiming to minimize the burden on the people,” it said in its announcement.
Under the support plan, a state-backed institution will fund the utility by borrowing public funds that it can in turn loan to Tepco. Other utilities operating nuclear-power plants will also pay into a fund, and the government will issue special-purpose bonds that Tepco can use to pay damages.
The government will also set up a third-party commission to oversee Tepco’s management, as it sells its assets and cuts costs.
The utility has agreed to set no upper limit on the total amount of compensation paid to radiation victims.
About 80,000 residents were evacuated from the area around the Fukushima Daiichi plant.
The plan was approved by the cabinet and now must be approved by Japan’s parliament.
Am I hearing you correctly that TEPCO is 100% responsible for the tsunami-related failure of the nuclear plants - and that every dime of compensation comes from them and not a portion from the government? That seems grossly unfair. If I am reading you correctly, the government will simply loan them money that they have to pay back, but the government itself is just doing TEPCO a favor, they have no liability? Are you sure that's the agreement? Because if it is, that's no agreement at all. That's a death sentence. It was my understanding that TEPCO would pay $2.4BL into a fund every year (along with other utility companies), and that the government's $62BL will jumpstart the fund. You're saying that TEPCO has to pay that $62BL back? There is NO contribution from the government in this matter besides the loans?