In response to the effects of the COVID-19 pandemic, the government’s labor bailout loan program on April 30 opened for applications. The bank I work for was among the first to accept applications, and as soon as we opened, we were flooded with applicants, and the telephones never stopped ringing.
The loans are available for Taiwanese workers aged 20 or older. The maximum loan amount is NT$100,000 per person and the current interest rate is 1.845 percent, which is based on Chunghwa Post’s fixed interest rate for two-year deposit accounts plus 1 percent.
The loan must be repaid within three years and there is an initial six-month grace period, during which only the interest must be paid. Between the seventh and the 12th month, the principal is amortized, and from the second year, the interest and principal should be paid.
It is estimated that 500,000 workers would benefit from the program, and therefore, the public should be aware of the credit evaluation summary sheet used by participating banks.
It contains active and passive information, with the active portion accounting for 65 percent of the sheet. It mainly measures the repayment ability of the loan applicant.
It is likely to collect work-related information, such as income and seniority, and proof of financial resources, such as assets and real estate, as reference for when the bank decides whether to approve the loan.
The passive information, which accounts for the rest, focuses on an applicant’s credit history, assessing their creditworthiness to see if they have a bad track record, such as late loan payments, rejected negotiable instruments, suspended credit cards or an excessive amount of debt.
To meet the needs of pandemic relief, more relaxed requirements were set for the credit evaluation, allowing even those without a previous credit score and who do not have labor insurance to apply, which gives most applicants an opportunity to receive a higher credit score that increases the chance that a bank would approve their application.
Applicants are usually informed of the outcome within three to five working days.
The system is designed to allow the government to help workers during this difficult time.
However, there are still a lot of people with bad credit ratings among those who apply for the loan. When they were told that they were not eligible for the loan, their disappointment and look of helplessness was heartbreaking.
The government could go a step further and focus more on economically disadvantaged people. For example, it could work through social welfare organizations that proactively provide care, ask about what difficulties and problems people experience, and provide subsidies in a timely manner.
The government could even consider the feasibility of providing transitional subsidies to reduce the impact of the pandemic on people’s livelihoods.
The most important thing is to make sure that people are well-informed through announcements and finding the right people to get the word out.
An excellent example of such proactive measures is provided by the Pingtung County Government, which offers a relief subsidy of NT$30,000 to workers who have no previous steady employment or are self-employed, and if a worker’s account is frozen due to debt or other issues, they can apply for payment through a check.
Now that the bailout loan program is up and running, the government should begin to plan ahead to subsidize other disadvantaged people who have not received help.
Jerry Chen is an assistant bank manager.
Translated by Lin Lee-kai
Recently, China launched another diplomatic offensive against Taiwan, improperly linking its “one China principle” with UN General Assembly Resolution 2758 to constrain Taiwan’s diplomatic space. After Taiwan’s presidential election on Jan. 13, China persuaded Nauru to sever diplomatic ties with Taiwan. Nauru cited Resolution 2758 in its declaration of the diplomatic break. Subsequently, during the WHO Executive Board meeting that month, Beijing rallied countries including Venezuela, Zimbabwe, Belarus, Egypt, Nicaragua, Sri Lanka, Laos, Russia, Syria and Pakistan to reiterate the “one China principle” in their statements, and assert that “Resolution 2758 has settled the status of Taiwan” to hinder Taiwan’s
Singaporean Prime Minister Lee Hsien Loong’s (李顯龍) decision to step down after 19 years and hand power to his deputy, Lawrence Wong (黃循財), on May 15 was expected — though, perhaps, not so soon. Most political analysts had been eyeing an end-of-year handover, to ensure more time for Wong to study and shadow the role, ahead of general elections that must be called by November next year. Wong — who is currently both deputy prime minister and minister of finance — would need a combination of fresh ideas, wisdom and experience as he writes the nation’s next chapter. The world that
The past few months have seen tremendous strides in India’s journey to develop a vibrant semiconductor and electronics ecosystem. The nation’s established prowess in information technology (IT) has earned it much-needed revenue and prestige across the globe. Now, through the convergence of engineering talent, supportive government policies, an expanding market and technologically adaptive entrepreneurship, India is striving to become part of global electronics and semiconductor supply chains. Indian Prime Minister Narendra Modi’s Vision of “Make in India” and “Design in India” has been the guiding force behind the government’s incentive schemes that span skilling, design, fabrication, assembly, testing and packaging, and
Can US dialogue and cooperation with the communist dictatorship in Beijing help avert a Taiwan Strait crisis? Or is US President Joe Biden playing into Chinese President Xi Jinping’s (習近平) hands? With America preoccupied with the wars in Europe and the Middle East, Biden is seeking better relations with Xi’s regime. The goal is to responsibly manage US-China competition and prevent unintended conflict, thereby hoping to create greater space for the two countries to work together in areas where their interests align. The existing wars have already stretched US military resources thin, and the last thing Biden wants is yet another war.