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KMT fears banks calling in loans

The Kuomintang could go bankrupt if banks started calling in their loans to the party, the official in charge of its assets told its Central Standing ...

KMT fears banks calling in loans

The Kuomintang could go bankrupt if banks started calling in their loans to the party, the official in charge of its assets told its Central Standing ...

TAIPEI (Taiwan News) – The Kuomintang could go bankrupt if banks started calling in their loans to the party, the official in charge of its assets told its Central Standing Committee Wednesday.
The issue of the KMT’s assets, and especially those illegally gained in the period after the departure of the Japanese colonial administration in 1945, has become a key issue as President-elect Tsai Ing-wen and her Democratic Progressive Party have been emphasizing the need for “transitional justice.”
The KMT’s regular weekly CSC meeting Wednesday invited the party’s Administration and Management Committee director Lin Yu-hsien to present a special report on the issue.
As on previous occasions, Lin put the total net value of the assets last December at NT$16.6 billion (US$507 million), a figure that has been widely attacked as being far too low.
However, just to pay pensions of previous staff members or salaries for existing ones and to prepare for the purchase of central or local party office buildings, the party needed NT$14.5 billion (US$441 million), Lin said.
Because the party’s operations registered an annual shortage of about NT$800 million (US$24 million) and a bank loan from the Central Investment Company totaling NT$18.6 billion (US$566 million), if the banks called in their loans, the KMT would go bankrupt, Lin warned.
The official recommended that whatever money was left over from the assets after those calculations should be donated to charity.
The KMT is in the middle of a campaign to choose a new party chairman on March 26. All four candidates have called for a speedy solution to the problem of the assets, but some have said the funds belong to party members and should be distributed among them instead of given away to charity.
The DPP has been preparing legislation to regulate the assets of political parties, but the KMT has accused it of unfairly targeting the outgoing ruling party.


Updated : 2022-05-18 16:58 GMT+08:00