In a policy reversal, the Ministry of Finance agreed last night to issue government bonds to raise all funds for rebuilding areas hit by Typhoon Morakot, ditching a plan to sell shares in state-run Land Bank of Taiwan (土地銀行).
Deputy Minister of Finance Tseng Ming-chung (曾銘宗) said last night that the ministry decided to comply with the legislature’s resolution on the matter.
The legislature green-lighted the special spending program, but attached a requirement that raised the budget ceiling to NT$120 billion (US$3.65 billion) from the proposed NT$100 billion and banned the Cabinet from selling stocks in banks with a government stake.
“The finance ministry will respect the legislature and finance all relief and reconstruction costs by issuing public debt,” Tseng told an unscheduled media briefing.
The public offering would have lowered the amount of debt the government needed to sell to cover reconstruction costs, Tseng said.
The government had aimed to raise at least NT$39.6 billion from the share sale, using the money to fund relief efforts after the typhoon demolished roads and bridges and buried villages between Aug. 6 and Aug. 9.
At least 461 people died in the disaster, with the destruction prompting the Cabinet to approve a reconstruction budget last week.
But bank employees protested the proposed sale and managed to win sympathy from lawmakers across party lines.
The policy change is expected to push the national debt up by 0.95 percent to NT$4.27 trillion, or 33.82 percent of GNP over the previous three years, Tseng said.
After factoring in the fiscal budget next year, however, the total debt would rise to NT$4.67 trillion next year, or 36.8 percent of GNP, inching closer to the ceiling of 40 percent as provided for by public debt regulations.
Tseng insisted the nation’s finances were under control, adding that governments in Japan, France and Singapore borrow much more money to sponsor public construction works and spur economic growth.
The deputy minister, however, would not rule out selling stocks in government-owned lenders in the future.
Such sales could be favorable to banks in terms of future development and accounting credibility, he said.
STIMULUS PLANS: An official said that China would increase funding from special treasury bonds and expand another program focused on key strategic sectors China is to sharply increase funding from ultra-long treasury bonds this year to spur business investment and consumer-boosting initiatives, a state planner official told a news conference yesterday, as Beijing cranks up fiscal stimulus to revitalize its faltering economy. Special treasury bonds would be used to fund large-scale equipment upgrades and consumer goods trade-ins, said Yuan Da (袁達), deputy secretary-general of the Chinese National Development and Reform Commission. “The size of ultra-long special government bond funds will be sharply increased this year to intensify and expand the implementation of the two new initiatives,” Yuan said. Under the program launched last year, consumers can
Citigroup Inc and Bank of America Corp said they are leaving a global climate-banking group, becoming the latest Wall Street lenders to exit the coalition in the past month. In a statement, Citigroup said while it remains committed to achieving net zero emissions, it is exiting the Net-Zero Banking Alliance (NZBA). Bank of America said separately on Tuesday that it is also leaving NZBA, adding that it would continue to work with clients on reducing greenhouse gas emissions. The banks’ departure from NZBA follows Goldman Sachs Group Inc and Wells Fargo & Co. The largest US financial institutions are under increasing pressure
TRENDS: The bitcoin rally sparked by US president-elect Donald Trump’s victory has slowed down, partly due to outflows from exchange-traded funds for the token Gold is heading for one of its biggest annual gains this century, with a 27 percent advance that has been fueled by US monetary easing, sustained geopolitical risks and a wave of purchases by central banks. While bullion has ticked lower since US president-elect Donald Trump’s sweeping victory in last month’s election, its gains this year still outstrip most other commodities. Base metals have had a mixed year, while iron ore has tumbled, and lithium’s woes have deepened. The varied performances highlight the absence of a single, over-riding driver that has steered the complex’s fortunes, while also putting the spotlight
Twenty years after he was a young, struggling actor in Toronto, Thomas Lo (盧瑞麟) is now the one giving young Asian actors their big breaks. He just had to go to Hong Kong to do it. The Chinese Canadian has been the creative director of one of the territory’s biggest TV broadcasting companies for only a few years, but is already making original English-language content to reach viewers around the world. “It was a bit of a full-circle moment for me,” Lo said. “You see more Asians, but you’re still seeing the same Asians on screen, right? We’re looking for more opportunities