relative file path for layout
Skip to main content  Skip to search  Skip to main menu
Trade and Industry Department The Government of the Hong Kong Special Administrative Region
Brand Hong Kong - Asia world city
MY COLOUR

Press Release

Special Loan Guarantee Scheme extended to June 2010
Thursday, October 29, 2009

The Government today (October 29) announced that the application period for the Special Loan Guarantee Scheme (SpGS) would be extended for another six months to June 30, 2010. The Government's total loan guarantee commitment under SpGS will remain at $100 billion. 

So far, 46 participating lending institutions (PLIs) have joined the SpGS. As of October 27, the Trade and Industry Department has approved 22,341 applications, involving a total loan amount of $53.5 billion. The applications approved cover a wide spectrum of companies and industries in both manufacturing and non-manufacturing sectors. The companies concerned have more than 250,000 employees and about 95% of the beneficiaries are SMEs.

"The SpGS is working well. It has effectively helped Hong Kong enterprises ease their financing and cashflow problems. Its effectiveness is fully recognised by the industry," a government spokesman said.

"The Government has implemented strong policy actions to stabilise the financial market, support enterprises and preserve employment to combat the financial crisis. Recently, there are signs that the economy is beginning to recover. On the other hand, the industry has expressed its hope to extend the SpGS to help enterprises grasp the chance of recovery and sustain the growth trend. Considering that the economic outlook in the coming months is still uncertain, we consider it necessary to extend the SpGS for another six months to provide continued support for Hong Kong companies," the spokesman said.

The application period for SpGS is scheduled to end on December 31, 2009. The Government will submit a paper to the Legislative Council Commerce and Industry Panel concerning the extension of the SpGS. 

The SpGS was introduced on December 15, 2008. It is a time-limited initiative to tackle the credit crunch problem arising from the global financial crisis. 

Under the SpGS, the Government provides a total loan guarantee commitment of $100 billion. With effect from June 15, 2009, the Government increased its guarantee ratio for loans granted by the PLIs from 70% to 80%. The maximum loan amount for each enterprise is $12 million, out of which up to $6 million can be used as a revolving credit line. 

All registered companies with substantive business in Hong Kong (except listed companies), and have been in operation for more than one year as at December 15, 2008 are eligible to apply.

Ends