Creative sector to get NT$360 bil. loan injection to fill blank canvases
By Kathryn Chiu , The China Post
December 18, 2013, 12:08 am TWN
TAIPEI, Taiwan -- A recently passed project to boost Taiwan's creative industry is expected to provide a mechanism that may increase credit limits for the sector by twofold to NT$360 billion by late 2017, according to local media.
The Executive Yuan recently hammered out a project proposed by the Financial Supervisory Commission (FSC), hoping to encourage bankers to inject more capital into local creative industry.
The project is part of efforts to provide across-the-board support for the sector. Those relevant agencies incorporate the FSC, Ministry of Culture (MOC) and Ministry of Economic Affairs.
The FSC is working on an incentive program encouraging banks to take a more proactive approach when it comes to extending credit to local firms, the official said.
With support from business associations representing the country's banks, insurance companies, securities brokerages and venture capital firms, a one-stop service window has been set up to provide free consultation on business operations, financial planning and marketing strategies, the official added.
According to United Evening News, the FSC, MOC and relevant industry associations will organize a joint seminar by the end of December to canvass input from all parties affected by future policy developments.
Part of Strategic Promotion of Six Emerging Industries
According to the FSC, combined efforts under the project are expected to see issued loans to local firms double to NT$360 billion in three years.
Sixty percent of local firms in the creative industry are small businesses with capital of less than NT$1 million. The sector is one of six emerging industries designated for strategic promotion by the government in 2009, a local media outlet said.
Most of these firms' balance sheets comprise intangible assets that are difficult to appraise, making it hard for them to obtain funding from the country's financial markets, an FSC official said.
Other complementary measures include having state-backed Taiwan Financial Asset Service Corp. set up databases for the local film, TV and music industries, as well as provide asset appraisal services.
Based on recommendations from the Bankers Association, the project features educational training, financing and other supporting initiatives.
The FSC earlier said it will study the possibility of allowing local insurance companies to invest in the sector, and has directed the Small and Medium Enterprise Credit Guarantee Fund to provide additional credit guarantees to firms seeking loans from financial institutions.
As a way of providing enhanced financing options for local firms, GreTai Securities Market launched a business information publication platform in August to provide information regarding creative business ideas.