A variety of ROC government-initiated support measures will be implemented to assist Taiwan’s firms weather the effects of the European sovereign debt crisis, according to the Financial Supervisory Commission June 17.
“The commission has mapped out strategies aimed at firming local financial markets and providing working capital to firms in need,” an FSC official said.
“Stock market stabilization measures will be rolled out in response to developments at home and abroad,” the official said, adding that the FSC is upping supervision efforts to ensure orderly operation of local markets.
According to statistics released June 15 by the ROC Central Bank, the exposure of local financial institutions to European debt in the first quarter totaled US$63.1 billion, or 31.1 percent of Taiwan’s total international claims.
“We have directed the island’s banks to reinforce their risk management capability, including strengthening banking capital and increasing allowances for bad debt,” the official said.
The FSC is also working with the Small and Medium Enterprise Credit Guarantee Fund of Taiwan to ensure uninterrupted supply of capital for businesses during this challenging period, the official added.
“Talks are being held with representatives from the ROC Bankers Association to come up with ways of assisting normally operating firms that are hard-pressed for working capital.”
The official said the FSC will continue monitoring the Greek election and its impact on the eurozone with a view to minimizing fluctuations in Taiwan’s markets. (JSM)
Write to Meg Chang at sfchang@mail.mofa.gov.tw