24 December 2003

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 (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 2004. Other provisions of the Guidance Note remain unchanged.

As you are aware, we are still in the process of reviewing the Guidance Note. We will inform you of our decision in due course.

Yours faithfully,

Arthur Yuen
Acting Executive Director
(Banking Supervision)