Taiwan’s Cabinet is set to announce on Wednesday its rules for intervening in Miaoli County’s financial woes.
Miaoli County Commissioner Hsu Yao-chang approached the Cabinet last Friday seeking a bailout. He said his county was heavily in debt and was having trouble paying salaries to civil servants.
The government has agreed to an intervention – the first of its kind in Taiwan’s history – but said it would not loan the county any money.
Media reports have said that the Cabinet may consider giving Miaoli an NT$800 million advance to enable it to pay government salaries. But Cabinet Spokesman Sun Lih-chyun says that the government is still in the initial stages of creating a structure for the financial intervention.