The Taiwan government will set up an asset management company AMC on 1 January next year to deal with the mounting bad debt problem in the country's banking system, according to Yen Ching-chang, the newly appointed finance minister.
The government-run agency will have a budget of NT$10 billion around $321 million to purchase troubled assets from local financial institutions, substantially less than the NT$20 billion to NT$30 billion mooted by the government when the idea was first floated last month.
Details on the new entity and its mandate are yet to be released, but the government hopes the private sector will follow its lead in setting up AMCs next year,...
