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Most former allies are repaying loans
The Ministry of Foreign Affairs says most of Taiwan's former diplomatic allies are repaying loans owed banks here in accordance with their contracts. The only two countries not repaying the loans are the Central African Republic and the Democratic Republic of Congo.
Spokesman Jeff Liu says all funds loaned to former allies were handled as part of commercial agreements with Taiwanese banks and the foreign ministry was the sole facilitator. According to Liu, the severance of diplomatic ties does not affect the validity of the contracts, so the former allies still have to repay the loans.
The foreign ministry spokesman also says although one Taiwanese bank filed and won a lawsuit against the two African countries that have failed to repay the loans, they are still refusing repayment. The bank is currently investigating other methods to recover assets.
