HKMA announced that HKMC (or Hong Kong Mortgage Corporation) Insurance Limited is raising the maximum amount of loan per enterprise under the Special 100% Loan Guarantee of the Small and Medium Enterprise (SME) Financing Guarantee Scheme (SFGS). The scheme enhancement is from the total amount of employee wages and rents for 6 months to that for 12 months, or HKD 5 million (originally HKD 4 million), whichever is lower. The total guarantee commitment is being raised from HKD 50 billion to HKD 70 billion. Meanwhile, the maximum repayment period of the guaranteed loans has increased from 3 years to 5 years. Borrowers with existing loans under the Special 100% Loan Guarantee can apply to their lending banks for increasing the loan amount and/or extending the repayment period.
Keywords: Asia Pacific, Hong Kong, Banking, SME, COVID-19, Loan Guarantee, SFGS, Credit Risk, Basel, HKMCI
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