Vietnam ousts UK as No. 9 debtor in Q3

NINTH DEBTOR:
Central bank official Pan Ya-hui said the increase in the number of companies relocating their investments to Southeast Asia from China has led to an increase in lending to Vietnam.

Vietnam became Taiwan’s ninth-largest debtor at the end of the third quarter, as rising tensions between Washington and Beijing prompted many companies to set up shop in the Southeast Asian country, boosting demand for funds. , the central bank reported on Friday.

On a direct risk basis, loans extended to Vietnam by Taiwanese banks jumped to $14.86 billion at the end of the third quarter from $13.49 billion at the end of the second, the central bank said. .

The UK fell one place to become Taiwan’s 10th-largest debtor with a debt to Taiwanese banks totaling $14.56 billion, down from $13.99 billion in the previous quarter, it said.

Photo: EPA-EFE

On an ultimate risk basis, which calculates a country’s consolidated debt after risk transfers, Vietnam’s debt to Taiwanese banks stood at $12.26 billion at the end of the third quarter, while UK was $10.31 billion, according to central bank data.

As a growing number of companies seek to relocate their investments to Vietnam from China, interbank and syndicated loans in Vietnam increased in the third quarter, said Pan Ya-hui (潘雅慧), deputy director of the examination department of the central bank.

At the end of the third quarter, Taiwanese banks’ international claims stood at $512.2 billion, up 1.61 percent from the second quarter, the central bank said.

On a direct risk basis, the United States remained the largest debtor to Taiwanese banks with loans totaling $116.32 billion, down from $113.28 billion at the end of the second quarter, he said. declared.

China was the second-largest debtor to Taiwanese banks with loans totaling $58.77 billion, up from $56.78 billion at the end of the second quarter, while Luxembourg was third with $43.00 billion, followed by Hong Kong ($36.17 billion), Japan ($33.74 billion), Australia ($25.18 billion), the Cayman Islands ($18.95 billion) and Singapore ($16. $93 billion).

Loans extended by Taiwanese banks to the top 10 debtors totaled $378.5 billion and accounted for 73.90 percent of banks’ international claims, the central bank said.

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