Economics Ministry to Offer Soft Loans for Purchase of Energy-Saving Equipment

The Ministry of Economic Affairs (MOEA) has decided to expand the scale of the special loans for the purchase of energy-saving equipment by domestic enterprises to NT$50 billion, up from existing NT$10 billion, in addition to giving them 2% interest subsidy for the loans for three years.

In addition, the National Development Fund, under the Executive Yuan (the Cabinet), will join forces with major enterprises to invest in energy-saving and carbon-reduction equipment industries featuring adequate scale and development niche, such as LED (liquid emitting diode), boiler, and energy automation industry.

Yiin Chii-min, economics minister, remarked that the low-interest loans are meant to encourage domestic enterprises to substitute new boilers and high-efficiency motors for outdated ones, so as to stimulate the development of related domestic industries.

Yeh Hui-ching, director general of the Bureau of Energy, MOEA, noted that with the 2% interest subsidy, domestic enterprises only have to bear 0.45% annual interest, an unprecedented preferential rate.

The preferential loans will be provided by the National Development Fund, which will expand its investment scope from the focus on bio-tech and digital contents in recent years to energy-saving and carbon-reduction equipment industries.

The MOEA has also decided to subsidize domestic enterprises in carrying out R&D on energy-saving and carbon-reduction products and equipment, raising the subsidy ceiling to 50%, up from 40% now.

Meanwhile, to help domestic enterprises cope with the cost burden caused by soaring material prices, the MOEA has resolved to provide guarantee to domestic enterprises in applying for working capital for material procurement, raising the guarantee ceiling to NT$15 million and 90% of total material cost, up from NT$10 million and 80% for the government`s existing guarantee assistance now.

http://news.cens.com/cens/html/en/news/news_inner_23849.html

Business Financial Services

Economics Ministry to Offer Soft Loans for Purchase of Energy-Saving Equipment