Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

Subject: 
The floating interest rates on one-year and two-year postal time deposits of the 
Directorate General of Postal Remittances and Savings Bank (hereinafter referred to 
as the“Postal Remittance and Savings Bank”) were both reduced by 10 basis pionts 
on February 8, 2001, both from 5.35 percent per annum to 5.25 percent per annum, 
followed by another 10 basis pionts decrease on February 13 to 5.15 percent per 
annum. The following Explanations detail loan rates and government subsidies in 
respect of home reconstruction loans for victims of the 921 Earthquake, to be 
funded by postal savings redeposits and allocated by the CBC to financial 
institutions, and in respect of the NT$320 billion Preferential Housing Loan 
Program in 2000 that is jointly administered by the CBC, the Ministry of the 
Interior and the Ministry of Finance.

Explanations:
1.Pursuant to Direction 6 of the “Directions for Allocation and Operations of 
　Emergency Home Reconstruction Loan Funds for Victims of the 921 Earthquake”, the 
　interest rate charged to lending banks by the Postal Remittance and Savings Bank 
　on allocated funds shall be a floating interest rate pegged to the one-year 
　postal time deposits. In addition, according to the Executive Yuan's "Scope, 
　Methods, and Procedures for Applications for Subsidies by Financial Institutions 
　Assuming Disaster-Area Resident Homes and Land" and the "Q&A Regarding the 
　Application of Victims to the Central Bank's NT$100 Billion Home Reconstruction 
　Program Following the Promulgation of the Temporary Statute for 921 Earthquake 
　Post-Disaster Reconstruction” promulgated by CBC on March 8, 2000, for financial 
　institutions that assume the original outstanding mortgage of the victims, or in 
　case the victims apply for interest subsidies for the original mortgage, the CBC 
　shall subsidize the interest thereon, with the subsidies based upon the Postal 
　Remittance and Savings Bank's floating interest rate on one-year postal time 
　deposits minus three percentage points or zero.
2.In addition, with respect to the NT$320 billion Preferential Housing Loan Program 
　jointly administered by the CBC, the Ministry of the Interior and the Ministry of 
　Finance, the lending rates of financial institutions shall be based on the Postal 
　Remittance and Savings Bank's floating interest rate on two-year postal time 
　deposits plus 100 basis points, in accordance with the "Directions for Financial 
　Institutions to Handle the Preferential Housing Loan and Credit Guarantee Program 
　for Youth" and Direction 5 of the "Directions for the Extension of Housing Loans 
　by Financial Institutions Under the NT$200 Billion Preferential Housing Loan 
　Program".
3.As to the allocation of postal savings re-deposits by the CBC for financial 
　institutions to conduct other preferential housing loans and loan programs, the 
　CBC  notified all financial institutions that have been allocated funds on May 
　30, 1996 that, whenever the Postal Remittance and Savings Bank adjusts its 
　interest rate, it shall notify every such bank the interest rates adjustment 
　table and the CBC shall not issue a separate notification .