Date: Feb 14, 2020
By: Crystal Hsu / Staff reporter
In the wake of the COVID-19 outbreak, the government’s debt-relief program might increase asset-quality risks for Taiwanese lenders in the short term, but the burden should be manageable, Fitch Ratings said yesterday.
The debt-relief measures are mainly to be carried out by state-run banks, which would have the government’s support, if necessary, the ratings agency said.
The measures allow for deferred repayments and new lending at preferential rates for borrowers in the affected sectors, mainly tourism and transportation, as well as small businesses and individuals.
Tourism and transportation, some of the hardest-hit sectors, accounted for less than 3 percent of system loans in the nation, Fitch said. [FULL STORY]