By Ted Chen / Staff reporterThe Financial Supervisory Commission (FSC) yesterday played down the feasibility of proposals aimed at providing low-cost financing for urban renewal projects through investment funds. The Ministry of the Interior has proposed relaxing regulations to allow investment funds geared toward urban renewal to gather funding from investors. The ministry also urged the commission to approve a number of state-run financial holding companies to establish urban renewal-specific securities investment trust subsidiaries that would be able to distribute the investment funds. Urban renewal projects also involve other variables such as tax laws and operating models. “An urban renewal investment fund would have less than ideal liquidity, and its valuation would be difficult to determine,” Chou said, adding that prospective investors would also be facing an extremely long duration.

Source: Taipei Times December 01, 2016 16:04 UTC