Taiwan Government Exempts Mortgage Repayments for Homes Destroyed by Typhoon Morakot

Taiwanese Premier Liu Chao-shiuan has agreed to allow state-owned banks to cancel outstanding mortgage balances for borrowers whose homes were completely destroyed or washed away during Typhoon Morakot. The decision aims to provide relief to affected individuals and families, particularly farmers and aquaculture operators who tend to mortgage their land and facilities to obtain loans. According to the Bankers Association of the Republic of China, the combined outstanding mortgages on destroyed houses exceed NT$700 million (US$21.21 million), with state-owned banks holding the mortgages for 262 of the houses, totaling slightly more than NT$600 million.

Key Takeaways:

• The Taiwan government has decided to exempt mortgage repayments for borrowers whose homes were completely destroyed or washed away during Typhoon Morakot, with state-owned banks canceling outstanding balances.
• The combined outstanding mortgages on 297 destroyed houses exceed NT$700 million (US$21.21 million), with state-owned banks holding mortgages for 262 of the houses, totaling NT$600 million.
• Bank of Taiwan is the top creditor with 260 mortgaged houses, while the remaining two mortgages are held by Land Bank of Taiwan and Taiwan Cooperative Bank, respectively.
• Private banks, including HSBC, hold the remaining 35 mortgages, with a total outstanding balance of NT$100 million.
• The Taiwan government has instructed state-owned banks to deal with the mortgage issue in a lenient manner and to write off outstanding mortgage payments on partially destroyed houses.
• Farmers and aquaculture operators will have their outstanding mortgages secured by assets that were washed away by flash floods written off by farmers' or fishermen's associations.

Statistics:

• NT$700 million (US$21.21 million) in combined outstanding mortgages on 297 destroyed houses
• NT$600 million in outstanding mortgaged houses held by state-owned banks
• NT$260 mortgaged houses held by Bank of Taiwan
• NT$100 million in outstanding mortgage payments held by private banks
• 297 houses completely destroyed in Morakot-triggered flooding and landslides

Sources:

• Asia Pulse, 27 Aug 2023
• Executive Yuan spokesman Minister Su Jun-pin
• Vice Finance Minister Tseng Ming-tsung
• Bankers Association of the Republic of China
• CNA lm 27-08 1120 ( timestamp indicates article publication date)