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5.
and interest rates in Hong Kong. He recommended that the
period of time, over which the movement of any substantial
sums out of Hong Kong dollars, would have to be spread out in
order to avoid undue pressure on the value of Hong Kong
dollars; and the Exchange Fund would need to be involved to
help mitigate the effects by intervening in the market.
Legal
9.
Legislative
changes would be required to allow staff
The
to borrow against future pension entitlements.
Consultant advised that since the Scheme would not permit
participating officers to realise the value of their future
pension entitlements prior to their retirement, the granting
of a lien over the future lump sum payment should not violate
the principle underlying the Inland Revenue's rules about
non-taxability of approved lump sum pension gratuities.
Borrowing
10.
The feasibility of the scheme as a whole hinges on
the borrowing aspects. Whether funding is to be obtained
from
syndicate of banks providing normal, on-balance sheet
loans, or from securitised instruments, or from a receivables
purchase
scheme, there are a number of key points of
difficulty. These are :
1.