Taiwan to introduce AMCs to rescue bad debt problems

Foreign investors will soon be allowed to set up asset management companies to deal with Taiwan''s bad debt problems.

The Taiwan government has vowed to release new rules in three months for the setting up of asset management companies AMCs in a bid to clean up the banking sector's mounting bad debt problem.

Foreign companies will be welcome to set up AMCs, says Vice Finance Minister Yen ching-chang, adding that it will be an absolutely profitable business. The initial capital required is estimated to be between NT$20 billion and NT$30 billion.

Yen says AMCs will not be restricted to the restructuring of bad debts in the banking sector, with managing bank assets also a possibility for AMC operators.

According to Taiwan's central bank, overdue loans held by domestic...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222