ASSISTANCE: The plan includes NT$70 billion for loan subsidies, market diversification and job stability, and NT$18 billion for the agricultural sector, the Cabinet said
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By Chung Li-hua and Jake Chung / Staff reporter, with staff writer and CNA
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The eligibility criteria for the Executive Yuan’s NT$88 billion (US$2.7 billion) support package have been broadened at the direction of Premier Cho Jung-tai (卓榮泰), with applicants required only to state how their businesses have been affected by the US’ “reciprocal” tariffs.
Previous eligibility requirements stating that businesses must report a single-month revenue loss of at least 15 percent and employ fewer than 30 people have been removed, the government said.
Under the revised terms, small, medium and micro businesses can apply for loans of up to NT$35 million per company at a fixed interest rate of 2.22 percent, with a six-year repayment period, it said.
Premier Cho Jung-tai, center, speaks during a meeting with representatives from an industrial park in New Taipei City yesterday.
Photo: CNA
For loans used to purchase equipment, the repayment term has been set at seven years, it added.
Acknowledging that small, medium and micro-sized enterprises have been among the hardest hit by US tariff policies, the government announced an additional NT$5 billion in loan funding for those businesses, supplementing the planned NT$11.6 billion stimulus package.
During a meeting with representatives from an industrial park in New Taipei City yesterday, Cho said his office would release details next week on how the Cabinet’s proposed NT$88 billion support package would help local industries mitigate the impact of US tariffs.
Specifics on how businesses in the industrial, agricultural and fishery sectors can access the assistance would be revealed tomorrow, he added.
The Cabinet had originally planned to unveil the support package earlier this week, but postponed the announcement, citing the need for additional time to revise the plans, as discussions continue between Cho, President William Lai (賴清德) and business representatives of companies that are expected to be significantly affected by upcoming US-imposed tariffs.
The package includes NT$70 billion earmarked for measures such as lowering loan interest rates, supporting market diversification and stabilizing employment, alongside NT$18 billion of financial assistance for the agricultural sector, the Cabinet said.
A draft bill for a special budget to fund the package is expected to be finalized on April 24 and submitted to the Legislative Yuan for approval, it said.
The government announced the support package following US President Donald Trump’s April 2 declaration of “reciprocal” tariffs on imports from dozens of countries, including a blanket 32 percent levy on most Taiwanese goods.
Trump later placed a 90-day pause on the tariffs and instead implemented a 10 percent duty on imports from all countries except China.
Negotiations between Taiwanese and US officials over the tariffs began on April 11, although neither side has released many details about the ongoing talks.
Meanwhile, the Financial Supervisory Commission (FSC) yesterday said that recently implemented measures to curb short selling on the local stock market would remain in effect, as uncertainty persists over the US’ shifting tariff policies.
The restrictions were introduced during the week of April 7 and later extended through Friday of the following week. However, unlike its previous announcements, the FSC did not specify an end date for the latest extension in its statement yesterday.
Among the measures introduced, the FSC reduced the intraday limit on sell orders for borrowed securities from 30 percent to just 3 percent of a stock’s average trading volume over the previous 30 sessions.
Additionally, the minimum margin ratio for short selling was raised from 90 percent to 130 percent on the Taiwan Stock Exchange, which runs the main market, and the Taipei Exchange, which operates the OTC market, the FSC said.
To ease financial pressure on investors amid heightened market volatility, the FSC also expanded the range of acceptable collateral that can be used to cover margin deficits.
