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Appendix
1) The TaiwanICDF provides long-term loans in accordance with the Regulations for Loans by the International
Cooperation and Development Fund as approved by the Executive Yuan. As of December 31, 2014 and
2013, the total outstanding loans denominated in U.S. dollars, Australia dollars and Euro dollars amounted to
US$89,928,616.51, AU$3,068,404.07, €20,837,674.52 and US$109,360,234.09, AU$ 0 and €20,837,674.52,
respectively.
2) Allowances for doubtful accounts were based on the Regulation for the TaiwanICDF Dealings with Past Due/Non-
Performing Loans and Bad Debts.
3) As Parque Industrial Oriente S.A. (PIO) defaulted on the loan extended for the Industrial Park Development Project
in Paraguay amounting to US$11,003,488.32, the TaiwanICDF filed a legal claim against PIO on September 1,
2003. The court in Ciudad del Este ruled in favor of the TaiwanICDF in the first trial on March 26, 2004. PIO filed
an appeal, which was rejected. Accordingly, it was proposed that the Industrial Park be auctioned off. Under
TaiwanICDF's 51st board resolution, TaiwanICDF has agreed, under a term of 20 years, for MOFA to repay
the remaining loan balance. Although the MOFA agreed to pay off the remaining balance annually for 3 years
beginning 2012 on December 13, 2012, payments of only US$3,293,162.77 and US$400,000 were made in years
2012 and 2013, respectively. There were no payments made by MOFA for year 2014. The MOFA stated in a letter
dated on April 16, 2014 that installments will resume starting from 2015 through annual budgets, and a payment
of US$500,000 has been allocated in the 2015 annual budget. As of December 31, 2014, the MOFA had repaid
US$5,793,162.77 and the remaining balance is US$5,210,325.55.
4) In order to acquire the right to operate the Industrial Park, the MOFA issued the Letter No. Wai-Jing-Mao
09333002180 requesting the TaiwanICDF to establish the private Paraguay Synthetic Corporation, which has a
registered share capital of US$10,000 in Panama on its behalf. The TaiwanICDF assisted Paraguay Synthetic
Corporation to submit a bid of US$7,100,000 and acquired the title to the land of the Industrial Park.
5) There was no significant past due loan as of December 31, 2014 and 2013.
6) See Appendix 1 for the statement of changes in long-term loans for the year ended December 31, 2014.
7. LONG-TERM LOANS RECEIVABLE
December 31, 2014
December 31, 2013
Current items
Current portion of long-term loans receivable
$ 426,329,752
$ 471,332,036
Less: Allowance for doubtful accounts
( 10,366,224 )
( 9,698,681 )
Net
$ 415,963,528
$ 461,633,355
Non-current items
Long-term loans receivable
$ 3,365,429,143
$ 3,845,746,456
Less: Allowance for doubtful accounts
( 95,582,599 )
( 101,166,680 )
Net
$ 3,269,846,544
$ 3,744,579,776
Total
$ 3,685,810,072
$ 4,206,213,131