Premier Jiang Yi-huah encouraged banks to extend loans to small and medium-sized enterprises (SMEs) in support of their development, which in turn will contribute to economic prosperity and social stability. He made the remarks today at the Cabinet meeting after being briefed by the Financial Supervisory Commission (FSC) and the Ministry of Economic Affairs (MOEA) on their programs to help SMEs obtain funds for business operations.
Under the FSC's special loan program for SMEs, the amount of loans extended to SMEs have been on the rise, with 2013 seeing an increase of NT$313.4 billion (US$10.4 billion) from the previous year and an additional NT$240 billion (US$8 billion) expected for 2014. The Small and Medium Enterprise Credit Guarantee Fund of Taiwan under the MOEA also performed extremely well in 2013, underwriting a total of NT$1.056 trillion (US$35.2 billion) for more than 390,000 cases, assisting SMEs to acquire a total of NT$1.312 trillion (US$43.7 billion) in loans.
"SMEs, which account for 98 percent of Taiwan's businesses and employ 78 percent of the work force, are the cornerstone of the nation's economic development and social stability. To support their growth, the government has provided a wide range of assistance and guidance measures," remarked the premier.
Jiang instructed the FSC to continue encouraging bank loans to SMEs as long as the risks are managed prudently. The MOEA was also asked to join forces with the FSC and promote innovative SME development measures among banks. These efforts will create a win-win-win situation for SMEs, banks and the nation, he added.
Prior to implementation of the FSC's special loan program in June 2005, the loans extended to SMEs by banks accounted for only 38 percent of all loans to Taiwan's businesses. By December 2013, that figure had grown to 52 percent, meaning that NT$52 out of every NT$100 were loaned to SMEs.