********************************************************
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Mortgage Corporation Limited (HKMC) today (December 13) held the signing ceremony for the SME Financing Guarantee Scheme. A total of 21 banks (listed at Annex) signed the letter of intent expressing their interest in joining the Scheme, to be launched on January 1, 2011.
The HKMC also announced that there will be a guarantee fee promotion for the first six months following the launch of the Scheme. Loans with tenor of one to three years will be granted a waiver of three months' guarantee fee, while loans with tenor of more than three years and up to five years will be granted a waiver of six months' guarantee fee. The promotional period will end on June 30, 2011.
The Chief Executive of the Hong Kong Monetary Authority and the Deputy Chairman of the HKMC, Mr Norman T L Chan, said, "The HKMC's SME Financing Guarantee Scheme offers extensive and flexible guarantee coverage to help SMEs in Hong Kong obtain more sustainable bank financing for their daily operations or to purchase of equipment. Also, this Scheme will help banks manage their lending risks more effectively - the banks can meet the financing needs of SMEs without having to warehouse excessive credit risks. Undoubtedly, the Scheme will bring benefits for SMEs, banks, the economy and employment in Hong Kong."
Ends/Monday, December 13, 2010
Issued at HKT 16:49
NNNN
