WEBODIGY Business & Finance Journal

Taiwan obtain a loan fund of $ 12 billion in new funding to invest in the company’s high-speed train. Dikucuri these funds in an effort to pay off previous loans.

As reported by the AFP, Monday (1/11/2010), syndicated loans equivalent to 382 billion Taiwan will be used to repay the loan Taiwan High-Speed Rail Corp. with interest rates higher during construction projects.
As is known, Vice President Ted Chia disclose if the fund is the largest syndicated loan in the history of Taiwan, which will save the company approximately $ 2 billion per year.

Billed as one of the largest private company ever to fund transportation projects such as the Taiwan High Speed Rail, has become more famous for its ability to collect a large debt.

Three years after the railway operating system much praised, Taiwan has to raise $ 70.2 billion Taiwan dollars ($ 2, 1 billion) is actually losing money. The number is approximately two-thirds of the capitalization.

After that, a sudden economic slowdown Taiwan experience where every day passengers projected to decline. As reported to the government in the 1980s recorded 280 thousand passengers per day, and now in the early 1990s has shrunk to only 87 thousand per day.

However, the company did not disclose more information about the interest rate new loans. However, local media predict interest rates approximately 1.83 percent per year.

For information, along the 345 kilometer (207-mile) railway system in northern Taipei, and Kaohsiung in the south using Japanese bullet train technology. A formula for build-operate-transfer (BOT) was adopted to wear corporate train by building and running the line for 35 years before giving it to the government.

The Federal Reserve (the Fed) said the interest rate housing loans in the United States (U.S.) is predicted to increase as much as three-quarters per cent during the spring.

“You might be thinking and see the price moves up faster than ever before,” said Federal Reserve Bank President Eric Rosengren told The Hartford Courant in Boston, was quoted as saying by Reuters Legal, Sunday (10/1/2010).

According to data mortgage finance company Freddie Mac, an increase in the average mortgage in the U.S. by 5.09 percent during the first week in January, and this is the highest rate during the past thirty years.

Fed predicts, until the end of March was recorded USD1, 25 trillion mortgage-backed securities in the housing sector purchasing program used to reduce the housing sector and support a number of investors, because it made it out of the worst slump in decades.

Policy made the Fed this year, may expand the program. If the economy will get worse again dramatically, but it is possible, it will not happen. “It’s not in our estimates. That’s not what we expected,” he said.