City treasury bonds worth distributing: New Taipei mayor
By Evelyn Tsai, Special to The China Post
July 10, 2014, 12:01 am TWN
New Taipei City Mayor Eric Chu (朱立倫) yesterday said that the city's proposed treasury bonds (市庫券) would receive higher interest rates on savings without risk, adding that they could become a new outlet for the government's financial adjustment, as well as a target for personal investments for private citizens.
Chu said that New Taipei City would become the first local government to issue city treasury bonds. Chu also said that he hopes this achievement would encourage other city governments to follow suit. Additionally, it could create an additional investment opportunity for grassroots citizens.
Currently, local governments apply for loans from banks to resolve their financial difficulties, said Chu. Through city treasury bonds, financial allocations of city governments could be conducted with ease under lower interest rates, the mayor said.
Citizens and banks could choose to purchase either long-term or short-term bonds once the bonds are officially established by the New Taipei City Government. Citizens could profit from interest rates, while the New Taipei City Government could boost its financial resources, Chu said.
DPP Legislators Oppose City Treasury Bonds
According to Legislator Gao Jyh-peng (高志鵬) of the Democratic Progressive Party (DPP), there was no observable evidence of financial deficit during former DPP Chairman Su Tseng-chang's (蘇貞昌) four-year term as Taipei County magistrate. Gao said the financial differences of New Taipei City under Chu and Su leads him to question the reason behind the distribution of the bonds.
In response to Gao's suspicions, Chu was quoted as saying, “In the past, the budget of Taipei County included the county government and the 29 townships under its jurisdiction. After being promoted to New Taipei City, the financial resources were not granted with any increase and have remained the same when compared to four years ago. Hence, New Taipei City will strive for the legalization of the bonds, as it could potentially relieve the financial deficit of the city government as well as the citizens of New Taipei City.”