Japan's government agreed Friday to a deal giving $11.5 billion in public funds to the Tokyo Electric Power Company (TEPCO) to cover costs in the aftermath of the March 11 earthquake and tsunami that crippled its Fukushima nuclear power plant.

The government said the funds would help TEPCO with cleanup and dismantling of the plant and compensation payments to residents of the area.

The money comes from a fund made up of all Japanese nuclear plant operators and the government.

In return, the utility must reduce its operating costs by more than $32 billion over the next 10 years and lay off more than 7,000 workers.

Engineers at Fukushima are still trying to bring the reactors to a stable cold shutdown by the end of this year.

News of the bailout came on the same day TEPCO forecast a nearly $8 billion loss for the current fiscal year, ending in March.