Taiwan offers NT$100 billion credit line for 'New Southbound Policy'
Taipei, Dec. 20 (CNA) The government is ready to offer a credit line totalling NT$100 billion (US$3.12 billion) next year to help local businesses invest or expand in 18 countries targeted by its "New Southbound Policy," the Financial Supervision Commission (FSC) said Tuesday.
The 18 countries include 10 members of the Association of Southeast Asian Nations (ASEAN) and six South Asian countries, as well as Australia and New Zealand. So far, no local banking institutions have set up branches or affiliated offices in Brunei, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka or New Zealand.
In order to help investors obtain or increase capital to make inroads or expand business in the 18 countries, the government has asked public banks such as the Export-Import Bank of the Republic of China to raise loans, guarantees and insurance for Taiwanese enterprises, said Chuang Hsiu-yuan, deputy director-general of the Banking Bureau under the FSC.
The government is also encouraging Taiwan's banking institutions to increase their credit lines for local companies doing business in those countries, Chuang added.
The government has set a target of increasing the total credit line by 3 percent-7 percent annually between 2017 and 2020 for enterprises doing business in the 18 "New Southbound Policy" countries, based on an estimated 3 percent-7 percent economic growth in the ASEAN countries, she said.
As of the end of October, Taiwanese banks had extended a total of NT$761.2 billion in loans or credit to businesses engaged in trade and investment with the 18 countries, up NT$106.6 billion from the end of last year.
As Taiwan is planning to increase the credit line by between NT$22.8 billion and NT$53.2 billion for businesses targeting the 18 countries in 2017, it is estimated that Taiwanese bank loans and credit guarantees for those countries will grow at least NT$100 billion within the next four years. (Courtesy of CNA)