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35.
Interest payments in 1991 were $4,722.2 million compared
with $5,368.6 million in 1990. The average placement receip outstanding rose to $67.9 billion compared with $59.7 billion in
1990 but the average interest rate paid on these receipts was much
lower (1991 : 5.80%, 1990: 8.31%). As a result, the amount of
interest paid on the receipts decreased by $1,063.0 million compared
with 1990. The 1991 payments include interest expenses of $673.7
million (1990: $281.1 million) on Exchange Fund Bills and $110.8
million (1990: $86.7 million) on short-term borrowings.
36.
Exchange losses, net of exchange gains, realised from
forex transactions including intervention, amounted to $716.5
million in 1991 compared with gains of $567.8 million in 1990.
37.
Investment gains, realised from sales of investments,
after off-setting realised investment losses, amounted to $949.4
million in 1991 compared with $2,760.6 million in 1990. Of these
gains, $59.7 million was attributable to gains on the sale of shares in the Hong Kong Building and Loan Agency Limited ($9.2 million) and the Cross Harbour Tunnel Company Limited ($50.5 million).
EXCHANGE AND INVESTMENT EQUALISATION RESERVES
38.
There was a net unrealised loss of $532.8 million
resulting from year end exchange rate translations and a net unrealised gain from year end revaluation of investments (including
gold) amounting to $5,145.0 million due to increase in market prices
of fixed income securities. These losses/gains were transferred to
the Exchange Equalisation Reserve and the Investment Equalisation
Reserve. As a result, the Exchange Equalisation Reserve was reduced
to $29,146.9 million (from $29,679.7 million at 31 December 1990)
and the Investment Equalisation
Equalisation Reserve increased to $5,188.2
million (from $43.2 million at 31 December 1990).
CONFIDENTIAL