The cabinet has decided to allow banks to provide additional project financing of 450
bn twd to old-economy companies, the Commercial Times reported.
The newspaper cited Council for Economic Planning and Development vice chairman Thomas Yeh as saying that the measure is aimed at stimulating the economy next year.
The additional lending will raise the total project financing to 2 trln twd. The original project-financing package expired last month.
The latest measure allows banks to provide loans to old-economy companies at interest rates of 1.15-1.65 percentage points above the post office's rate for two-year time-saving deposits.
The government will provide guarantees for the loans concerned in order to cut banks' risks, the report said.
Source: AFX Asia
