Sat, Nov 24, 2012 - Page 1 News List

Hau warns debt ceiling cut will slow development

By Mo Yan-chih and Shih Hsiu-chuan  /  Staff reporters

Asked to comment on the disapprovals voiced by lawmakers and local government heads, Executive Yuan spokesperson Cheng Li-wun (鄭麗文) said that Premier Sean Chen (陳冲) has urged the Ministry of Finance to enhance communication with those who oppose the idea.

“It’s understandable that local governments wish to have a greater loan capacity, but, as the central government, it has to take all factors into consideration. If we raised the national debt ceiling, it may imperil the sovereign credit rating,” Cheng said.

Given that the national debt ceiling is also covered in the proposed amendment, with a view to maintaining the country’s fiscal health, “it’s impossible to satisfy everyone,” she said.

Cheng said that “there was no need to overreact” to the proposed adjustments because the debt ceilings fluctuate in accordance with each municipal government’s ability for self-financing and changes in their economic situation.

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