Session No. 5 File name : cedb(cit)- doc
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- Examination of Estimates of Expenditure 2010-11
Question: The Government launched the $100 billion Special Loan Guarantee Scheme (SpGS) in December 2008, with an aim to help Hong Kong companies with good track record and reasonable business prospects in obtaining financing. According to the statistics maintained by the Trade and Industry Department (TID), as of 26 February 2010, a total of 28 533 loan applications have been approved, involving a total loan amount of $69.1 billion. Would the Administration please inform this committee: (a) What is the latest figure for default cases under the SpGS? What is the amount of claims involved? (b) How would TID follow up the default cases? Has an abuse-prevention mechanism been established? How would such mechanism be implemented? (c) Will the Government extend the application period for the SpGS again? If yes, for how long? If no, how much of the expenditure has been reserved and by what means will the Government support the small and medium enterprises (SMEs)? Asked by: Hon. CHAN Mo-po, Paul Reply: (a) As at the end of February 2010, TID has received 55 default claims under the SpGS, involving a total claim amount of $59 million. (b) Upon receipt of a default claim from a participating lending institution (PLI), TID will carefully examine whether the PLI has complied with all the requirements in approving and monitoring the use of the loan, such as whether the PLI has followed its professional and prudent principles in approving the loan, whether the use of the loan complies with the requirements under SpGS. We have introduced a number of safeguard measures under SpGS to prevent abuse, including: (i) personal guarantee is required of the enterprise owner or, in the case of a limited company, shareholders together holding more than 50% of the equity interest of the enterprise; (ii) the enterprise must have been in operation for at least one year on the date of implementation of the SpGS; (iii) the enterprise must have no outstanding default in any other lending institution; and (iv) the loans should not be used for repaying, restructuring or repackaging other loans. (c) SpGS is an exceptional measure which aims to assist Hong Kong enterprises in coping with the global financial crisis. It is a time-limited scheme. The application period has been extended twice till the end of June this year. We will closely monitor the pace of economic recovery in the coming months and decide when to let the credit market resume normal operation.
Question: Please provide details of the consultations on policy making and assessment under all programmes in the following format. Using the table below, please provide information on the consultations for which funds had been allocated in 2009-10:
Asked by: Hon. EU Yuet-mee, Audrey Reply: The Trade and Industry Department did not conduct any consultation on policy making and assessment in 2009-10.
Directory: citb -> doc doc -> Replies to initial written questions raised by Finance Committee Members in examining the Estimates of Expenditure 2012-13 Director of Bureau : Secretary for Commerce and Economic Development Session No. 12 File name : cedb(cit)- doc Download 4.7 Mb. Share with your friends:
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