1
SUNDAY, OCTOBER 27, 1974
BIGGER LOANS FOR INDUSTRIAL DEVELOPMENT
RRRRRRR
BIGCER LOANS TO PROMOTE INDUSTRIAL DEVELOPKENT IN HONG KONG CAN NOW BE OBTAINED UNDER THE COVERNMENT'S LOAN SCHEKE FOR SMALL
INDUSMIES.
THE COMMERCE AND INDUSTRY DEPARTMENT ANNOUNCED TODAY THAT THE UPPER LÒẠN LIMIT HAS DEEN RAISED TO $500,000 DOUBLE THE PREVIOUS CEILING OF $250,000.
THE SCHENE HAS ALSO BEEN MODIFIED TO ENACLE A VIDER RANGE OF INDUSTRIAL AIRMS TO PARTICIPATE DY INCREASING THE UPPER LIMIT ON PROPRIETORS' \\FUNDS FROM $1 MILLION TO $2 MILLION.
+WE HOPE THESE MINOR MODIFICATIONS WILL STIMULATE A GREATER DEMANDS FOR LOANS,+ SAID A SPOKESMAN FOR THE CONKERCE AND INDUSTRY DEPARTMENT.
HE STRESSED THAT THE SCHEME WAS, NOT DESIGNED TO PROVIDE WORKING CAPITAL, BUT WAS INTENDED TO FOSTER INDUSTRIAL DEVELOPMENT BY MAKING LOANS AVAILABLE FOR BUYING NEW MACHINERY WND EQUIPMENT.
+THE OBJECT IS TO PROVIDE AN INCENTIVE TO INDUSTRIAL CONCERNS TO SEEK FUNDS FOR MODERNISING THEIR FACTORIES, INCREASING THE IR EFFICIENCY AND BOOSTING THEIR PRODUCTIVE\CAPACITY,+ THE SPOKESMAN ADDED.
HE POINTED OUT THAT THERE WAS A NEED FOR INDUSTRIAL FIRMS TO UP-DATE THEIR MANUFACTURING TECHNIQUES IN ORDER TO STAY AHEAD OF. THEIR COMPETITORS IN WORLD MARKETS.
ACTION TO MODIFY THE SCHENE HAS BEEN TAKEN ON THE ADVICE OF THE TRADE AND INDUSTRY ADVISORY BOARD AND THE WEW TERMS COME INTO
IMMEDIATE EFFECT.
THE LOANS FOR SMALL INDUSTRY+ SCHEME IS A JOINT VENTURE BETWEEN THE GOVERNMENT AND THE COMMERCIAL BANKING SECTOR. IT CAME INTO OPERATION IN JULY, 1972, FOR A TRIAL PERIOD OF THREE YEARS AND SUBJECT TO A TOTAL LOAN COMITHENT OF $30 MILLION,
SINCE THE SCHEME WAS STARTED LOANS TOTALLING $1, 441,000 HAVE BEEN MADE.
BEFORE A LOAN IS MADE, THE APPLICANT FACTORY IŞ EXAMINED BY THE HONG KONG PRODUCTIVITY CENTRE WHICH SUCHITS A DETAILED REPORT TO THE COMMERCE AND INDUSTRY DEPARTMENT ON THE VIADILITY AND LIKELY EFFECT OF THE PROPOSED NEU MACHINERY) ON THE FACTORY'S\ PRODUCTION, PRODUCTIVITY AND PROFITS.
REPAYMENT OF THE LOAN IS OVER A PERIOD OF UP TO FIVE YEARS
AT THE PRIME INTEREST RATE PLUS TWO PER CENT TO COVER THE PRODUCTIVITY CENTRE'S COSTS AND THE GOVERNMENT'S RISK IN UNDERWRITING 50 PER CENT OF THE LOAN AMOUNT AGAINST FAILURE TO PAY.
12.
Page 30Page 31