Sir,
SPEECH BY THE HONOURABLE THE FINANCIAL SECRETARY IN LEGISLATIVE COUNCIL: WEDNESDAY 8 APRIL 1987
I move the motion standing in my name in the
Order Paper.
2.
Section 12 of the Mass Transit Railway
Corporation Ordinance requires the authority of the
Legislative Council for the Financial Secretary, on behalf
of the Government, to grant guarantees in respect of the
repayment of loans and other indebtedness incurred by the
Corporation.
3.
Authority is now sought for government
guarantees to be granted free of charge for financing
instruments issued by the Corporation, up to a total value
of HK$3,000 million, to replace its longer term government
guaranteed export credit debt obligations, which in turn
will be cancelled. The instruments will include floating
or fixed-rate loans with terms of between 2 to 9 years.
This switch to market borrowings will benefit the
Corporation because the replacement instruments will carry
lower interest rates and substantial interest cost savings
are expected. The Government will also benefit because
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/MTRC will replace