Japanese Prime Minister Shinzo Abe has agreed that his country would shoulder the cost of postponing the Olympics – estimated at around US$3 billion (S$4.3 billion) – in line with the existing contract, Kyodo news agency said, citing the International Olympic Committee.

Kyodo said the IOC, headquartered in Switzerland, made the disclosure on Monday (April 20).

In a question and answer post on its website, the IOC said Abe “agreed that Japan will continue to cover the costs it would have done under the terms of the existing agreement for 2020, and the IOC will continue to be responsible for its share of the costs.”

The IOC added: “For the IOC, it is already clear that this amounts to several hundred millions of dollars of additional costs.

“The postponement was not determined by financial interests, because thanks to its risk management policies including insurance, the IOC will in any case be able to continue its operations and accomplish its mission to organise the Olympic Games.”

Abe announced on March 24 that the Tokyo Games would be postponeddue to the global interruptions and health concerns caused by the coronavirus pandemic.