Our Ref: B9/53C

29 March 2001

The Chief Executive
All Authorized Institutions

Dear Sir/Madam,

Guidance Note on Taxi Financing

I refer to my letter of 29 December 2000 enclosing the Guidance Note on Taxi Financing. Pursuant to paragraph (g) of the Guidance Note, we have reviewed the data on the cash-flow position of taxi operators and value of taxi licence submitted by the panel established under that paragraph and decided to revise the Maximum Finance Amount (i.e. the loan cap) per taxi licence, as specified in paragraph (a) of the Guidance Note, from HK$2.125 million to HK$2.25 million. The revised loan cap will be effective from 2 April 2001 and the next review of the Guidance Note will be made at the end of June 2001.

Other provisions of the Guidance Note remain unchanged.

Yours faithfully,

Y.K. Choi
Executive Director
(Banking Supervision)

c.c. The Hong Kong Association of Banks
The DTC Association