HK special loan guarantee scheme extended to June 2010

16:02, October 29, 2009      

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The Hong Kong government Thursday announced that the application period for the Special Loan Guarantee Scheme would be extended for another six months to June 30, 2010.

So far, 46 participating lending institutions have joined the scheme, which was a time-limited initiative aiming to tackle the credit crunch problem arising from the global financial crisis.

As of Oct. 27, the Trade and Industry Department had approved 22,341 applications, involving a total loan amount of 53.5 billion HK dollars (about 6.9 billion U.S. dollars).

The applications approved cover a wide spectrum of companies and industries in both manufacturing and non-manufacturing sectors. The companies concerned have more than 250,000 employees and about 95 percent of the beneficiaries are small and medium enterprises.

"The Special Loan Guarantee Scheme is working well. It has effectively helped Hong Kong enterprises ease their financing and cash flow problems," a government spokesman said.

"Considering that the economic outlook in the coming months is still uncertain, we consider it necessary to extend the scheme for another six months to provide continued support for Hong Kong companies," he said.

Under the scheme, which was introduced on Dec. 15, 2008, the government provides a total loan guarantee commitment of 100 billion HK dollars (about 12.9 billion U.S. dollars).

Source: Xinhua
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