Taiwan High Speed Rail Corp (
The credit fell through after Taiwan banks showed no interest in providing necessary guarantees for the loans, the company said. The Taiwan government agreed to dip into three state-run insurance and pension funds to provide the financing at market rates. The company is seeking an additional NT$40 billion from banks for the project, said company spokeswoman Corinna Fu (傅虹).
"Taiwanese banks aren't familiar with export credits and showed lackluster interest in providing guarantees," she said.
The state-owned Taiwan railway builder and operator awarded the first equipment contracts for the nations's first high-speed magnetic-levitation line to Japanese companies in December 2000.