![The Fukushima nuclear plant was badly damaged in the March earthquake and tsunami, and has been leaking radiation ever since. [AFP]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_ubtRH8GTNtONz2wVhYh2gHlQ4RcImlxDiHRpeUY0xu7OlAM4eNLCVCFaF-VwAkq-pV8Udckk3xNPX1LvJRLxnJ2aH6FFhwzNbFqwdg5nUB1kFRkmtRB2xLoQ=s0-d "The Fukushima nuclear plant was badly damaged in the March earthquake and tsunami, and has been leaking radiation ever since. [AFP]")
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The president of the Japanese company Tokyo Electric Power (TEPCO) has resigned over the Fukushima nuclear crisis.
Masataka Shimizu's resignation comes as the firm reported a record loss of more than $US14 billion for the past financial year after being hit by huge costs as a result of the crisis.
The Fukushima nuclear plant was badly damaged in the March earthquake and tsunami, and has been leaking radiation ever since.
TEPCO will appoint current managing director Toshio Nishizawa to replace Mr Shimizu, effective after a June shareholders' meeting.
The loss for Japan's biggest utility comes amid criticism over its handling of the nuclear crisis, in which it faces massive compensation claims, prompting the government to devise a rescue plan.
The beleaguered utility says it has decided to scrap four reactors at the plant crippled after the March 11 earthquake, and abandoned plans to build two more.
The company plans to cut jobs and draft a streamlining plan this year, as it looks to raise funds to pay for a compensation bill that some analysts have estimated to top $114 million.
The company did not provide an outlook for the current fiscal year and said it will not pay a dividend for the full year.
The last time the company skipped an annual dividend was when it was established in 1951.
Masataka Shimizu's resignation comes as the firm reported a record loss of more than $US14 billion for the past financial year after being hit by huge costs as a result of the crisis.
The Fukushima nuclear plant was badly damaged in the March earthquake and tsunami, and has been leaking radiation ever since.
TEPCO will appoint current managing director Toshio Nishizawa to replace Mr Shimizu, effective after a June shareholders' meeting.
The loss for Japan's biggest utility comes amid criticism over its handling of the nuclear crisis, in which it faces massive compensation claims, prompting the government to devise a rescue plan.
The beleaguered utility says it has decided to scrap four reactors at the plant crippled after the March 11 earthquake, and abandoned plans to build two more.
The company plans to cut jobs and draft a streamlining plan this year, as it looks to raise funds to pay for a compensation bill that some analysts have estimated to top $114 million.
The company did not provide an outlook for the current fiscal year and said it will not pay a dividend for the full year.
The last time the company skipped an annual dividend was when it was established in 1951.
Recession
Meanwhile, Japan's central bank has left interest rates unchanged as it monitors the economic impact of the country's twin disasters.
The Bank of Japan has left its key rate between zero and 0.1 per cent, saying the economy faces strong downward pressure.
The economy plunged back into recession in the January-March quarter, falling sharply in the immediate wake of the quake and tsunami and subsequent nuclear crisis.
JP Morgan senior economist, Masamichi Adachi, has told Radio Australia's Connect Asia program rebuilding will help stimulate the economy, but momentum must continue.
"If the manufacturers react too cautiously then that will be really negative for the economy," he said.
"Also, if the consumers feel depressed through the summer time that [is] definitely bad for the economy."
- ABC/AFP
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