Hong Kong improves scheme to assist SMEs

Developments seen to boost the programme's flexibility and help banks provide stronger fund support for SMEs.

The Mortgage Corporation has launched a series of upgrades to the SME Financing Guarantee Scheme to encourage banks to use the programme to help small and medium enterprises, according to a government report.

The improvements include:

• increasing the general interest rate limit for SFGS-guaranteed facility from 8%-10% to 10%-12%;
• increasing the limit of high interest rate loans from $50 million to $100 million per bank; and,
• allowing drawdown of all types of revolving facilities to be done in both Hong Kong and foreign currencies.

Mortgage Corporation Executive Director and Monetary Authority Deputy Chief Executive Peter Pang said the enhancements will further boost the scheme's flexibility and help banks provide stronger fund support for small and medium enterprises.