of
their
tax
advantages
and
easy
administration.
debt
Given the present state of the
market in Hong Kong, there would be
demand for the securitised debts.
insufficient
In order to create a demand for the securitised
debt instruments, the consultant suggested that
the
new
private sector pension legislation
should stipulate a requirement that the
approved private pension schemes shall maintain
at least 50% of their assets in Hong Kong
dollars.
Interest Rate Guarantee
12.
event
The
Consultant
recommended that funds could be
month paper on a rolling basis, the
raised by issuing six
proceeds of which would be converted into US dollars. In the
that the Hong Kong dollar interest rate on the
borrowings exceeded the US dollar yield in the investments by
more than an agreed margin, the Hong Kong Government could
guarantee to absorb the excess cost of the borrowing.
13.
In order
liability on any
to limit the Hong Kong Government's
guarantee, the consultant recommended a 2
trigger-point system be established :
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