High Speed Rail financial reform program clears legislative committee

Focus Taiwan
Date: 2015/05/21
By: Wang Shu-feng and Maubo Chang

Taipei, May 21 (CNA) The Transportation Committee of the Legislative Yuan approved a financial reform program for the debt-ridden Taiwan High Speed Rail on Thursday.

Under the program, the Taiwan High Speed Rail Corporation will have to reduce its capital by 60 percent, or NT$39.1 billion (US$1.26 billion), to cover its losses before raising its capital by NT$30 billion, of which NT$24.2 billion will come from the government-managed High Speed Rail Construction Fund, while another NT$5.8 billion will come from state-invested banks.

After that, the stake of the company’s private owners will be decreased from 37.4 percent to 17.4 percent, with the rest lying in the hands of the state-controlled institutes.     [FULL  STORY]