On the afternoon of December 22 at the Presidential Office Building, President Ma Ying-jeou held a press conference after a meeting of a newly formed Financial and Economic Task Force, and explained that seven conclusions were reached at the meeting in response to the debt crisis in the eurozone. Attending the press conference were high-ranking officials including Vice President Vincent C. Siew, National Security Council Secretary-General Hu Wei-jen (胡為真), Vice Premier Sean C. Chen (陳冲), Minister of Finance Lee Sush-der (李述德), Minister of Economic Affairs Shih Yen-shiang (施顏祥), Central Bank of the Republic of China Governor Perng Fai-nan (彭淮南), Financial Supervisory Commission Minister Chen Yuh-chang (陳裕璋),Minister of Labor Affairs Wang Ju-hsuan (王如玄), and Government Information Office Minister Philip Y.M. Yang (楊永明).
The president made the following remarks during the press conference:
Today, we held the first meeting of the Financial and Economic Task Force at the Presidential Office Building. Attending the meeting were Vice President Siew, Acting Premier Chen, National Security Council Secretary-General Hu, Civil Service Minister Chang Che-shen (張哲琛), Central Bank Governor Perng, Minister of Finance Lee, Minister of Economic Affairs Shih, Council for Economic Planning and Development Minister Christina Y. Liu (劉憶如), Government Information Office Minister Yang, Financial Supervisory Commission Minister Chen, Minister of Labor Affairs Wang, and Professors Chen Tain-jy (陳添枝) and Chu Yun-Peng (朱雲鵬). Those attending the meeting received a briefing from Central Bank Governor Perng, who presented an analysis of the global economic and financial impact of the eurozone debt crisis. In addition, Financial Supervisory Commission (FSC) Minister Chen also presented a report on measures to strengthen the financial markets. Participants at the meeting reached a seven-point consensus, as follows:
1. The FSC unveiled a variety of financial assistance measures, such as aiding small- and medium-sized enterprises in obtaining financing, and coordinating with the Bankers Association to provide "Self-Regulatory Rules on Debt Negotiations" and "Temporary Supplemental Principles for Handling by Banking Institutions of Stock-secured Loans." We must take proactive and timely steps to implement these measures.
2. Additional funding of NT$8 billion will be provided to the Small and Medium Enterprise Credit Guarantee Fund of Taiwan, which is expected to increase the amount of credit guarantees by NT$112 billion and lending to SMEs by NT$140 billion. This will ensure ample funding to meet the needs of SMEs.
3. Starting in January of next year, subsidies will begin to be provided for the purchase of energy-saving appliances. The success of this initiative will be reviewed, and the initiative will be expanded as appropriate. The government is also adopting concrete targets for the installation of LED streetlights for cities and counties throughout Taiwan. This measure will also be reviewed and expanded as appropriate.
4. Relief loans of up to NT$100,000 will be made available to individual unemployed persons. In addition, persons who are involuntarily unemployed will be helped to negotiate with banks for deferment or rescheduling of mortgage principal payments. This will cover up to NT$6 million of principal for each household. These measures are aimed at providing assistance to laborers who have been affected by the downturn in the economy.
5. The task force praised the measures adopted by the FSC to stabilize the stock market. In addition, based on the recommendations of the FSC, the four major government funds will be asked to make investments in the stock market with long-term returns in mind. Related agencies shall form a task force to carry out this initiative.
6. The FSC has been asked to work with the insurance industry to encourage medium- and long-term investment in public infrastructure projects, so long as long-term investment returns can be assured, to stimulate domestic demand.
7. The mobilization of the National Stabilization Fund has yielded a positive impact. The fund will continue to be utilized to ensure stability and liquidity in the stock market.
These are the conclusions that were reached at the first meeting of the task force that was held earlier today. I have asked the Executive Yuan to make every effort to ensure the immediate implementation of each measure, whether long- or short-term in nature. The task force will convene meetings in the future as deemed appropriate to examine the effect of the measures in achieving their desired objectives. In addition, at that time, other forward-looking and policy-oriented measures will be formulated and introduced.