Business

Japan's Chubu Electric gets 100bn yen emergency loan

Aerial view of No.1 reactor building at Fukushima (27 April 2011)
Image caption Aerial images show the extent of damage to the No 1 reactor building at Fukushima Daiichi plant

Chubu Electric, Japan's third biggest utility, will receive an emergency loan to purchase alternative sources of power, as the country continues to face a shortage.

The company will get a 100bn yen loan ($1.24bn; £775m) , it confirmed.

Chubu was forced to shut down its Hamaoka power station amid fears of nuclear accidents.

An earthquake and tsunami on 11 March caused a nuclear crisis at Fukushima, run by Tokyo Electric Power (Tepco).

Nuclear fears

Tepco, the country's largest utility, is still struggling to bring four damaged nuclear reactors under control.

In May, Prime Minister Naoto Kan requested Chubu close its Hamaoka plant citing the high chance of a quake in the region.

There continues to be a strong anti-nuclear sentiment in the country.

Chubu agreed to the suspension but asked for public assistance to deal with the costs associated with it.

The emergency loan will be distributed through the Development Bank of Japan, according to Banri Kaieda, the minister of economy, trade and industry.

The money is to help Chubu finance the purchase of power sources such as gas, in order to make up for the shortfall from closing down the Hamaoka station, Mr Kaieda told reporters when announcing the loan.