The government plans to raise about NT$110 billion (US$335 million) by releasing its shares in national enterprises to rebuild areas hit by Typhoon Morakot, Minister of Finance Lee Sush-der (李述德) said yesterday.
The Cabinet is drawing up a special budget, preliminarily set at NT$110 billion, by issuing bonds and disposing of public assets to fix bridges, roads and other infrastructure washed away by the floods.
Lee said his ministry would give priority to selling shares in state-run companies at a pace that would not jeopardize the government’s controlling stake.
“The government is also considering issuing bonds and divesting national properties to help finance the reconstruction program,” Lee said by telephone. “The ministry has yet to reach a conclusion.”
While there are options, Lee said he understood that many were uneasy about the growing national debt and the ministry would factor in these concerns when proposing the sources of funding in the next few days.
The local media said the Cabinet was considering spreading the reconstruction costs over the next two or three years, using funds from selling shares in three firms — Taiwan Financial Holding Co (台灣金控), Taiwan Tobacco and Liquor Corp (台灣菸酒公司) and Taiwan Cooperative Bank (合作金庫銀行).
The government owns 100 percent control in the three companies and releasing part of its holdings would not dilute its influence, reports said.
The ministry may also opt to sell shares in Mega Financial Holding Co (兆豐金控) and Chunghwa Telecommunications Co (中華電信), in which it holds 22 percent and 35 percent of the shares respectively, the media said.
Lee refused to comment on the reports.
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