HK Confirms Year-End Withdrawal Of Special Loan Guarantees

by Mary Swire, LawAndTax-News.com, Hong Kong

19 November 2010

Hong Kong’s Secretary for Commerce & Economic Development, Rita Lau, has confirmed that the government will not extend its Special Loan Guarantee Scheme when it expires at the end of this year.

She disclosed that more than 37,000 applications have been approved under the HKD100bn (USD12.9bn) the Special Loan Guarantee Scheme, involving a total loan amount of HKD90bn. The Scheme has benefited 20,000 firms, of which 95% are small- and medium-enterprises, and helped preserve 330,000 jobs.

She said, while the government has extended the Scheme's application period until end-2010, it will end after that date as the lending environment has greatly improved and the number of applications has reduced.

However, she pointed out that the existing Loan Guarantee Scheme, including the enhancement measures introduced in November 2008, will continue to render appropriate assistance to small- and medium-sized enterprises (SMEs).

Furthermore, the Hong Kong Mortgage Corporation Limited has also recently announced that it will launch a SME Financing Guarantee Scheme from January 1, 2011, to assist local SMEs to obtain sustainable bank financing.

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