Signing Ceremony for the SME Financing Guarantee Scheme

The Hong Kong Mortgage Corporation Limited (HKMC) today (Monday) held the Signing Ceremony for the SME Financing Guarantee Scheme. A total of 21 banks (listed at Annex) signed the letter of intent expressing their interest in joining the Scheme to be launched on 1 January 2011.

The HKMC also announced that there will be a guarantee fee promotion for the first six months after the launch of the Scheme. Loans with tenor of one to three years will be granted a wavier of three months' guarantee fee, while loans with tenor of more than three years and up to five years will be granted a waiver of six months' guarantee fee. The promotional period will end on 30 June 2011.

Mr Norman T.L. Chan, the Chief Executive of the Hong Kong Monetary Authority and the Deputy Chairman of the HKMC, said, "The HKMC's SME Financing Guarantee Scheme offers extensive and flexible guarantee coverage to help the SMEs in Hong Kong obtain more sustainable bank financing for their daily operations or purchase of equipment etc. Also, this Scheme will help banks manage their lending risks more effectively - the banks can meet the financing needs of the SMEs without having to warehouse excessive credit risks. Undoubtedly, the Scheme will bring benefits for the SMEs, banks, economy and employment in Hong Kong."

The Hong Kong Mortgage Corporation Limited
13 December 2010

Photo caption: Mr Norman T.L. Chan (the fifth from left on the front row), the Chief Executive of the Hong Kong Monetary Authority and the Deputy Chairman of the Hong Kong Mortgage Corporation, takes part in the Signing Ceremony for the SME Financing Guarantee Scheme with 21 banks.