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State banks to write off outstanding mortgages on destroyed houses

State banks to write off outstanding mortgages on destroyed houses

Taipei, Aug. 26 (CNA) The government has decided to exempt borrowers from repaying mortgage balances on houses completely destroyed or land plots washed away during Typhoon Morakot earlier this month, officials said Wednesday.
"Premier Liu Chao-shiuan has agreed to have state-owned banks cancel the balance on those mortgages, " said Executive Yuan spokesman Minister Su Jun-pin.
According to statistics compiled by the Bankers Association of the Republic of China, the combined outstanding mortgages on the 297 houses completely destroyed in Morakot-triggered flooding and landslides slightly exceed NT$700 million (US$21.21 million).
State-owned banks hold the mortgages for 262 of the houses, which total slightly more than NT$600 million. Bank of Taiwan is the top creditor with 260 mortgaged houses, and the remaining two mortgages are held by Land Bank of Taiwan and Taiwan Cooperative Bank, respectively.
The other 35 mortgages are held by private banks, with HSBC being the major creditor, according to the Bankers Association tallies.
Vice Finance Minister Tseng Ming-tsung said state-owned banks will fully support the government policy and deal with the mortgage issue in a lenient manner.
The ministry will also be pleased if state-owned banks decide to write off the balance of mortgage payments on partially destroyed houses, Tseng said.
The total outstanding mortgages on houses half-toppled in the storm amounted to NT$600 million, according to Bankers Association statistics.
Meanwhile, Executive Yuan spokesman Su said the Bankers Association will assist in lobbying private banks to follow the rules for state-owned banks in exempting repayment of outstanding mortgages on houses fully destroyed or washed away during the storm's onslaught.
As most farmers and aquaculture operators tend to mortgage their farmland, fish ponds and facilities to obtain loans from farmers' or fishermen's associations, Su said, these associations will write off outstanding mortgages secured by assets that were washed away by flash floods.
(By Sofia Wu)




Updated : 2021-05-17 13:14 GMT+08:00