Undaunted by the prolonged economic recession, Taiwan plans to spend about NT$100 billion (US$2.9 billion) in new capital venture funds to upgrade domestic industry, it was reported yesterday.
The money -- NT$30 billion from the government and the rest from the private sector -- will be divided into 50 capital venture funds available early October, the Chinese language media reported quoting the nation's economic czar as saying.
"Banks tend to be more reluctant than before in lending money to the newly developed industrial sector in the so-called knowledge-based economy era during which lifecycle of technology and industrial products is short," said Chen Po-chih (
"The funds are designed to help the high-tech firms obtain their badly needed loans," he said on the sideline of a seminar Saturday in a tribute to the late central bank governor Liang Kuo-shu (梁國樹).
There are 191 venture capital companies in Taiwan with a combined capital of NT$130 billion.
Taiwan's economy has suffered its biggest quarterly fall in 26 years of 2.35 percent year-on-year in the three months to June.
The flagging economy received another body blow after Typhoon Nari devastated northern Taiwan two weeks ago in the worst floods in a century.
In this respect, Chen said the council has pointed out in a recent report to the Executive Yuan that a series of natural disasters like Nari will impact the execution of several government recovery plans in job creation, development of a knowledge-based economy, enhancement of traditional industries and investment in infrastructure projects.
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