In the News

Cabinet gears up to stabilize Taiwan economy

ROC Premier Sean C. Chen reaffirms the Cabinet’s readiness to help Taiwan safely navigate the European sovereign debt crisis. (Photo: Ku Chin-tang)

• Publication Date：06/20/2012
• Source： Taiwan Today
• By  Meg Chang

The ROC Cabinet is keeping a close eye on developments in the eurozone and has appropriate policy measures in place to bolster the local economy, Premier Sean C. Chen said June 19.

“We will continue monitoring the situation in Greece, Italy and Spain, as well as the G-20 Mexico Summit and upcoming meeting of eurozone finance ministers, for any possible impact on Taiwan’s economy.”

Chen made the remarks during a Cabinet meeting following the election victory of mainstream pro-austerity parties New Democracy and Pasok in Greece—a development widely considered favorable in the ongoing European sovereign debt crisis.

Citing statistics by the Financial Supervisory Commission, Chen said the exposure of local banks to Greece, Ireland, Italy, Portugal and Spain is NT$23.38 billion (US$780.57 million), or 0.07 percent of the institutions’ assets.

“So far, the impact on Taiwan’s financial sector has been minimal,” Chen said, adding that the island must remain vigilant as the situation in Europe is unclear and the U.S. and mainland China continue to post weaker-than-expected economic results.

As part of this approach, the ROC Central Bank will implement appropriate monetary policies to maintain market liquidity and stable exchange rate movements,” Chen said.

“The FSC is also set to introduce market stabilization measures aimed at bolstering business activity on the island and strengthening risk management capabilities of financial institutions.”

Additional central government programs planned for the second half of the year, Chen said, include a series of seminars on boosting Taiwan’s economy organized by the Council for Economic Planning and Development, and nationwide industrial development meetings run by the Ministry of Economic Affairs. (JSM)

Write to Meg Chang at sfchang@mail.mofa.gov.tw