New Airport Projects Co-Ordination Office
Information Unit
Transcript of Press Briefing,
July 6, 1991.
Present:
Mr K.Y. Yeung, Secretary for the Treasury Mrs Anson Chan, Secretary for Economic Services Mr Michael Leung, Secretary for Transport.
Mr Yeung opened by saying that many media enquiries had been received and that he and his two colleagues would be happy to questions.
answer
Question 1: The thing with which most people are concerned is with the five billion dollars ceiling on loans, above which the government must consult China. Yesterday, Sir Piers Jacobs said that the Airport Authority, is, obviously, a separate body, and has no ceiling on its loans.
That they can borrow Is that correct?
as much as they with no restrictions whatsoever?
Mr Yeung:
want
try and draw a and the
That is absolutely correct. One must distinction between the Airport Authority's borrowings government's borrowings.
Mass
Transit
Railway One
The Airport Authority, like the Corporation, will have two types of finance for its operations. is. of course, the government's equity contribution, in other words its equity capital. And, like the Mass Transit Railway Corporation it will also need to borrow. to finance its programme of works. Now, it able to borrow will be able to borrow effectively. It will be effectively if these loans were guaranteed by the government, the case of the Mass Transit Railway Corporation.
as in
There is no limit on the Airport Authority's borrowings, but, in respect of those borrowings which straddle 1997, which are. guaranteed by the government, there is a need to consult through the Airport Committee. So that's one sort of loans.
Separately, the government contemplates borrowing for general purposes. These are not, repeat, not, borrowings for the airport. The government borrows and has borrowed before for basically two all reasons. First of all,
spending and to iron out peaks in
And secondly, for responsible governments do that all over the world. macro-economic reasons. For example, if it wants to reduce the money supply, take some money out of the market
means of dampening, say, inflation.
as a
Now, we have in mind a general programme of government borrowings in the form of Treasury bills. The legislation for that has already been enacted and we will be approaching the legislature for borrowings in the next session of the Legislative Council.
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