The four government funds involved in propping up the nation's stock market last year lost a combined total of over NT$100 billion, figures released for the funds showed yesterday. But the head of the stabilization fund yesterday said the "paper losses" were recoverable.
"When the TAIEX returns to 6,250 points, the loss in the National Stabilization Fund (國安基金) will be recovered," Vice Minister of Finance Lin Tzong-yeong (林宗勇) told the Legislative Yuan's Finance Committee yesterday. Lin is also executive secretary of the stabilization fund.
According to the most recent financial report for the four government funds, at the end of February, the Postal Saving Fund (郵政儲金) lost NT$39 billion, the Civil Servants Pension Fund (退輔基金) lost NT$30.2 billion, and the Labor Insurance Fund (勞保基金) lost NT$270 billion. The combined total losses were NT$96.2 billion.
In addition, the Labor Pension Fund (
While the National Stabilization Fund does not disclose its financial status, local media estimates put fund losses at some NT$50 billion.
The four government funds and the National Stabilization Fund lost between NT$150 billion and NT$200 billion at the end of last year, according to the government's financial report. Those losses have been reduced with the partial recovery of the TAIEX this year. But further recouping of losses may not be quite so easy.
"According to my information, when the TAIEX rises to 6,250 points, the stabilization fund will be able to recover its losses. However, the four government funds will have to wait until the TAIEX hits 8,550 to recover their losses," said Legislator Lee Shang-ren (李先仁).
Lee also asked the finance ministry to disclose the percentage of China Development Industrial Bank's (CDIB, 中華開發工業銀行) shares currently being held by the four government funds and the stabilization fund. Lee believes that the percentage may be as high as 13 percent. Minister of Finance Yen Ching-chang (顏慶章) said it is only 2.16 percent.
CDIB is going to elect a new board in May. The DPP administration is interested in replacing the bank's management. The bank has long been treated as one of the KMT's business holdings, although the KMT has denied having any connection with the CDIB.
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