TAIWAN

PS interest rate cut

The Taiwanese Government is to lower the preferential interest rate on designated bank savings by Public Servants.
   Deputy Minister for the Civil Service, Wu Chung-cheng said the preferential 18 percent interest rate on savings accounts held by public officials would be dropped as part of wider reforms to the sector’s retirement system.
   Mr Wu said however the details of the reform plan, including interest rate adjustments, have not been finalised.
   He said reducing the preferential interest rate was merely one aspect of the greater plan which was proposed to deal with the effects of an aging society, a slump in the birth rate and a growing government deficit.
   He said an agreement had been reached on cutting the interest rate which had been introduced at a time when Taiwan’s Public Servants did not receive many benefits.
   Mr Wu said it was time for changes to be made to the system, which dated back to 1991, as employment situations had transformed dramatically.
   “There is now room for the system to be changed,” Mr Wu said.
   He said the overseeing committee for public sector work conditions, the Examination Yuan, would be responsible for determining how much the rate would be lowered and Cabinet would not interfere in the matter.

Taipei, 24 January 2013
Edition 346, 29 January 2013
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