Japanese Banks May Provide $25bn to Tepco

22 March 2011 (Last Updated March 22nd, 2011 18:30)

Japanese banks are set to provide emergency loans to Tokyo Electric Power (Tepco) valuing over ¥2 trillion ($24.6bn) to boost electricity supply, twice the amount reported in initial accounts. The lending units of Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mi

Japanese banks are set to provide emergency loans to Tokyo Electric Power (Tepco) valuing over ¥2 trillion ($24.6bn) to boost electricity supply, twice the amount reported in initial accounts.

The lending units of Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group may provide up to ¥1.4 trillion while about ¥600bn is set to come from Sumitomo Trust & Banking, Chuo Mitsui Trust Holdings, Mitsubishi UFJ Trust & Banking, and Mizuho Trust & Banking.

Tepco’s Fukushima Daiichi nuclear-power plant was crippled by the earthquake and tsunami that struck Japan on 11 March and the company has been making efforts to contain radiation leakage at the facility since then.

Meanwhile, power lines had been reconnected to the six reactors at the Fukushima facility, bringing in some optimism.