The Bankers Association of the ROC (銀行公會) yesterday introduced a relief measure aimed at shoring up local companies hit by liquidity pressures following the US’ announcement of a 32 percent “reciprocal” tariff on Taiwanese goods on April 2 — a move that was followed by a 90-day reprieve a week later.
The measure, approved by the Financial Supervisory Commission, was to take effect after member banks were notified yesterday, it said.
Under the plan, companies that remain operational and continue to meet their debt and interest obligations may apply for a six-month extension on principal maturing due before Dec. 31, it said.
Photo: Kelson Wang, Taipei Times
For new loans issued under the government’s program to mitigate the impact of tariffs, lenders should ease collateral requirements, the association said.
Specifically, if the Small and Medium Enterprise Credit Guarantee Fund of Taiwan (信保基金) provides a guarantee covering more than 80 percent of the loan, banks should refrain from requesting additional guarantors beyond the company’s responsible parties, and should avoid asking for deposits as collateral, it added.
Financial institutions have also been instructed to expedite loan processing to ensure the timely release of funds, it said.
The measures are aimed at providing critical liquidity support and mitigating operational risks for Taiwan’s export-oriented businesses amid rising global trade tensions, it added.
Small and medium-sized manufacturers of non-tech products are considered less financially equipped to weather external shocks, it said.
The association has also urged banks to adopt a streamlined credit assessment process.
For loans that are fully guaranteed, banks may waive the requirement to collect audited financial statements and instead adopt simplified credit review procedures, it said.
In cases where loan guarantees are only partial and the new borrowing exceeds NT$30 million (US$924,214) after new borrowing, audited financial statements may be submitted within three months, the association said.
Loans of NT$15 million or less should also qualify for simplified reviews, it added.
As for existing debt, businesses seeking to extend loans totaling up to NT$200 million that are due to mature before the end of this year may be exempt from providing updated financial projections, the association said.
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
An Indonesian animated movie is smashing regional box office records and could be set for wider success as it prepares to open beyond the Southeast Asian archipelago’s silver screens. Jumbo — a film based on the adventures of main character, Don, a large orphaned Indonesian boy facing bullying at school — last month became the highest-grossing Southeast Asian animated film, raking in more than US$8 million. Released at the end of March to coincide with the Eid holidays after the Islamic fasting month of Ramadan, the movie has hit 8 million ticket sales, the third-highest in Indonesian cinema history, Film
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
‘IMMENSE SWAY’: The top 50 companies, based on market cap, shape everything from technology to consumer trends, advisory firm Visual Capitalist said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was ranked the 10th-most valuable company globally this year, market information advisory firm Visual Capitalist said. TSMC sat on a market cap of about US$915 billion as of Monday last week, making it the 10th-most valuable company in the world and No. 1 in Asia, the publisher said in its “50 Most Valuable Companies in the World” list. Visual Capitalist described TSMC as the world’s largest dedicated semiconductor foundry operator that rolls out chips for major tech names such as US consumer electronics brand Apple Inc, and artificial intelligence (AI) chip designers Nvidia Corp and Advanced