HKMC Enhances Terms of SME Loan Guarantee Scheme Amid Pandemic
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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