Government to sell shares

The government may sell NT$107.8 billion (US$3.2 billion) more of it shares in Taiwan Tobacco & Liquor Corp (台灣菸酒公司), Taiwan Power Co (台電) and other companies next year to help plug a budget deficit forecast to reach record levels this year.

The government previously planned to sell shares worth NT$400 billion.

"Whether we'll realize the new sale plan and previous plans depends on market conditions," H.Y. Chou, a director at the Ministry of Finance's Department of National Treasury, said in a telephone interview. "We won't do it if the stock market is as bad as it has been recently."

The government faces a budget deficit of NT$304 billion this year and interest costs on national debt of more than NT$3 trillion, an all-time high. Assets that may be sold next year include shares in Bank of Taiwan (台灣銀行), Land Bank of Taiwan (土地銀行) and Central Trust of China (中央信託局).