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.
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