CONE
ONFIDENTIAL
機密
- 8.
The three countries not mentioned above whose contractors
may tender for E and M contracts, namely, Belgium, Holland
and Switzerland, are expected to offer 80 - 90% of export
value repayable over 10 - 12 years from contract completion.
Since the completion dates for most contracts are in the
second half of 1979 and early 1980, the first repayment of
the export credits would take place during the first half
of 1980. All the terms mentioned above precede any serious
negotiation and are, therefore, minimum terms. In addition,
offers of finance relating to the import element of contracts
have been received from other sources.
For the purpose of the current cash flow estimates, it
has been assumed that 85% of the total offshore value will
be available, to be redeemed in equal annual instalments from 1980-88, at an overall cost of just over % p.a. (including
expenses).
(b) Local: Hong Kong dollar funds have the advantage of avoiding
any currency exchange risk, but are not normally available
at long term. It is thought that a commitment can be
obtained for a line of credit of HK$500 million for 5-7 years
repayable in 1982 at an average overall cost of some 10%
p.a.; such a line could be drawn at any time during the
construction period.
CONFIDEN
機密