Our Ref: B9/53C

31 December 2001

The Chief Executive
All Authorized Institutions

Dear Sir/Madam,

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 that the Maximum Finance Amount (i.e. the loan cap) per taxi licence, as specified in paragraph (a) of the Guidance Note, shall remain at HK$2.25 million. The current loan cap shall therefore continue to be effective until end of March 2002. The next review of the Guidance Note will be made at the end of March 2002.

Other provisions of the Guidance Note remain unchanged.

Yours faithfully,

Y.K. Choi
Executive Director
(Banking Supervision)