Central Bank Initiates Recovery of Subsidy Mechanism with Eight Major Banks Identifying Clear Evidence of Offenses: Mostly Sublet Tenants

Reported about 1 year ago

The Central Bank raised interest rates, pushing mortgage rates over 2% as a response to the increased burden on homebuyers. To alleviate this, the Ministry of Finance launched the 'New Qing'an' scheme under the eight major state-owned banks, providing interest subsidies. However, issues like subletting and straw buyers arose. After investigating initial offenders, mainly subletting tenants, the banks identified low-risk cases within the high-risk inventory and plan to reconsider loans and reclaim interest subsidies. Measures include requiring new borrowers to sign affidavits and stopping subsidies for violations, with approximately 5,798 loans totaling over 428.1 billion NT dollars granted under the New Qing'an scheme from August last year to the end of May this year.

Source: YAHOO

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