Taipei, May 9, 2008 (CENS)--Taiwan`s outstanding construction loans witnessed a monthly drop of NT$2.071 billion (US$64.72 million at US$1 = NT$32) to NT$1.026683 trillion (US$32.084 billion) in March of this year, the first decline ever in four years, according to the statistics released by the central bank here.

Nevertheless, the construction loans extended by financial institutions here sharply increased by NT$600 billion (US$18.75 billion) in the last four years, with the total outstanding amount breaking NT$1 trillion (US$31.25 billion) for the first time in December of 2007.

Market observers said that currently Taiwan`s construction market is near saturation and many construction firms have repaid loans after completing, selling projects. This is believed the main reason for the fall in the outstanding construction loans in March.

In February of the year, the outstanding home-purchase loans experienced the first negative growth in five years, but bounced back to monthly record high of NT$4.647792 trillion (US$145.24 billion) in March, up NT$11.934 billion (US$372.94 million) from a month earlier.

However, in the same month the outstanding home maintenance loans posted the third consecutive monthly drop to NT$844.263 billion (US$26.38 billion). In the last three months, such loans declined a total NT$4.135 billion (US$129.22 million).

Car loans also dropped a total of NT$60 billion (US$1.88 billion) in two and half years to an outstanding NT$83 billion (US$2.6 billion) in March, the lowest of its kind in four years; while revolving-credit and other personal loans also saw continual down trending.

(by Judy Li)