TAIPEI - TAIWAN on Thursday announced a loan programme totalling 600 billion Taiwan dollars (S$27 billion). Banks will provide the loans to the companies with their own funds, but the central bank will supply money to the lenders should they run short, a cabinet statement said.

The programme took effect immediately and companies can apply for the loans, which will have a maximum tenure of five years, until the end of 2010, it said.

The government in September unveiled an economic stimulus package worth US$5.6 billion (S$8.5 billion) to help achieve its target of 4.3 per cent economic growth this year and shore up the ailing stock market.

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