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The Government will re-submit to the Finance Committee (FC) of the Legislative Council the proposal to increase this year's quota of the Home Starter Loan Scheme (HSLS) tomorrow (Friday).

The Chief Executive announced a package of measures to revive the economy on June 22. It includes the increase of this financial year's drawdown of the HSLS from $3.6 billion to $7.2 billion. This measure is subject to the approval of the FC. The Administration submitted the proposal to the FC on July 17, but it was voted down.

"Since a large number of Legislative Councillors have now indicated their support for the proposal, the Administration has decided to re-submit it to the FC tomorrow (Friday), and hopes that it will be approved. This submission is the same submission that was put to the FC last time," a government spokesman said.

Separately, at the last FC meeting, some members expressed views on ways to help those persons who purchased properties at the peak of the market and now still unable to obtain adequate mortgage financing.

"Provided that no public funds are involved, the Administration is prepared to listen to any feasible suggestions," the spokesman said.

"We have obtained the consensus of the Hong Kong Housing Society (HS). HS will make the necessary arrangement to ensure that there is adequate manpower to speed up the processing of HSLS applications.

"Up to now, HS has issued over 1,000 certificates of eligibility for purchasing properties to households which are able to meet the requirements," he said.

The objective of HSLS is to help eligible families to purchase their own homes. The maximum loan amount is $600,000 or 30 percent of the purchase price of the property, whichever is lower. The household income of the applicant must be not more than $70,000 per month and he must not have assets that worth more than $1.2 million in net value, nor owned any residential property in Hong Kong in the past 10 years.

End/Thursday, July 30, 1998

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