萬國法律事務所

Taiwan’s Financial Supervisory Commission (FSC) has approved the New Taipei City Government to issue "City Treasury Bills”, which are a type of short-term debt obligation. This is the first case in which a Taiwanese local government has applied for approval to issue short-term bills. These bills are inferior to Taiwan’s National Treasury Bills, and as such, these City Treasury Bills must have a credit rating or obtain assurance from financial institutions. Officials have stated that sales of these City treasury Bills will be helpful to the New Taipei City Government as a source of funding.

The FSC stated that it had been holding meetings and conferences with the New Taipei City Government and the bills industry for quite a long period of time. The bills industry had been hoping for more government issued units, so as to stimulate the bills market.

The FSC also indicated that none of the local governments have ever applied to issue short-term bills. The issuance of these bills must be approved by the FSC in order to be regarded as short-term bills under the bills financial law. Further, the FSC said that not every local government will be permitted to issue short-term bills. Approval to issue will depend on the purpose and plans for such issuances, as well as the financial condition of the local government requesting the approval.