Gov't to sell 40% stake in Land Bank for typhoon relief

The share sale has been listed in a special budget for reconstruction after the worst flood in Taiwan in 50 years struck southern Taiwan, said Tseng Ming-tsung, the deputy minister. The Ministry of Finance plans to raise funds for the special budget by selling a 40 percent stake it holds in Land Bank of Taiwan, he said, adding the rest of the budget will come from issuing debts. “During a disaster, government agencies are permitted by law to sell their holdings in certain firms to help with the relief efforts,” Tseng said. “We will sell a 40 percent holding in Land Bank of Taiwan to raise NT$40 billion.”

The ministry will still have a 60 percent stake in Land Bank after the share sale and will have control over it, he said. Land Bank of Taiwan will be traded publicly next year at the earliest, he said, adding the reconstruction budget must be passed by the Legislative Yuan first.

He further said the finance ministry will offer tax cuts and reduction for victims in disaster areas to help relieve their tax burdens.

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