WERMENT HOUSE HONG KONG.
WED 16 SEP 92 10:15
16.02
520
47
布政司署
科
香港下亞厘道
CIVIL SERVICE BRANCH GOVERNMENT SECRETARIAT LOWER ALBERT ROAD HONG KONG
STRICTLY PERSONAL AND CONFIDENTIAL
**** Our Ref.: (47) in CSB-S/8 VI
*S** YOUR REF..
HKA 233/
4 September 1992
copus to
ne Fish No Man's
me
Poss Paris
File of
Pls
Mr. J.K. Gray,
Deputy Chairman, Hong Kong Bank,
1 Queens Road Central, Hong Kong
bom John,
Pension Safeguards
K.Y. Yeung
has shown
де your letter of
17 August 1992 on the subject of pension safeguards.
not
I fully accept that the proposed loan scheme is an effective means to safeguard any default in pension payments.
What I'd like to do now is explore the feasibility of a modest loan scheme to safeguard the Sterling value of the commuted pension gratuities for some 300 senior officers retiring between now and 2002. The total size of the loan required could be around HK$600-700 million in the ten-year period at 1991-92 prices.
Under such a scheme, an officer might take out a loan from the Bank in Hong Kong dollars, equivalent to his accrued commuted pension gratuity five years before retirement, and place it in Sterling fixed deposit. The officer Would repay the loan, together with any administrative changes, in Hong Kong dollars and withdraw the Sterling fixed deposit at the end of the five year period.
I should be grateful for your advice on the scheme and the likely costs to is interest rate margin and loan
feasibility of such a officers involved, that fee.
M
16/9
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