15.
CONFIDENTIAL
BANK RESCUE OPERATIONS
- 43
Expenses on bank rescue operations include arbitration costs of
$11,000 of The Wing On Bank Limited, and operating costs of
$128,403,000 and net interest payments of $61,562,000 in
connection with the guarantee for The Ka Wah Bank Limited.
16.
INTEREST PAYMENTS
Interest on Exchange Fund debt certificates amounted to
$1,183.2 million, compared with $878.6 million in 1986.
Average debt certificates outstanding in 1987 were $7.7 billion
higher than in 1986.
17.
MONEY MARKET OPERATIONS
Income
Less: expenses
18.
INTEREST INCOME
1987
1986
HK$ '000s
HK$'000s
2,202
233
1,223
(233)
979
===
Although interest rates were generally lower in 1987, interest income increased by 19.8% compared with 1986. This is partly due to an increase in the Fund's interest bearing assets and
partly to the use of higher base exchange rates. Interest income also includes $97,405,000 from the standby facilities
provided by the Government to The Ka Wah Bank Limited, $10,190,000 from the temporary line of credit provided by the Government to First Pacific Bank Limited and $10,795,000 from
the loan to The Hong Kong Futures Guarantee Corporation Limited.
CONFIDENTIAL