Taiwan’s government has pledged to help keep the embattled operator of bullet trains on track by mediating in negotiations with creditor banks to take out a syndicated loan to refinance part of the company’s T$390bn (US$12bn) in debt.

Hu Hsiang-ling, a deputy director general at the ministry of transport, said on Tuesday that he hoped financing arrangements for High Speed Rail Corporation could be finalised before the end of the year but declined to give further details on the proposed loan. The ministry said it would “provide the necessary financing assistance” to keep the company in operation.