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.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
RSS