DEPUTY TC 5 OFFICE (QOS)
+852 521 7058
P.11
CONFIDENTIAL
10
Overall costs of rescuing banks
Present Position
ExCo has agreed that the
overall costs of the
amounting to about
seven bank rescues in the 1980's. $3.8 billion, should be
be disclosed without revealing the breakdown if possible. This will be done on Friday when the OTB (Acquisition) (Amendment) Bill 1993 is gazetted. The above figure will be included in the LegCo brief and in a press release to be issued on Friday.
Line to take
The costs incurred in these rescue operations were modest and represented money well spent to help ensure the stability of Hong Kong's banking
banking sector and the monetary system døring a critical period. It is only about 3.6% of the accumulated earnings and 1.3% of the total assets of the Exchange Fund as at the end of 1992.
CONFIDENTIAL
TOTAL P.11