TOKYO (Nikkei)–The government will pump 31 billion yen in public funds into two credit cooperatives based in quake-hit Fukushima Prefecture, The Nikkei learned Wednesday.
The money will be provided to Iwaki Shinkumi Bank and Soso Shinkumi Bank under revised legislation aimed at strengthening the functions of financial institutions. The funds will be used to bolster the credit cooperatives’ capital bases, which have been badly eroded by the March 11 disaster and the nuclear accident at the Fukushima Daiichi nuclear power plant.
The credit cooperatives will issue preferred subscription securities, of which 80-90% will be underwritten by the government-backed Deposit Insurance Corp. of Japan through the Shinkumi Federation Bank, and 10-20% will be underwritten by the Shinkumi Federation Bank.
As a result, Iwaki Shinkumi Bank will receive a total of 20 billion yen and Soso Shinkumi Bank will get 16 billion yen.
Filed under: 8.Eathquake & Nuclear accident