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Thursday, November 8, 1973

MODIFIED LOAN SCHEME TO STIMULATE INDUSTRIAL DEVELOPMENT

A modified loan scheme open to the vast majority of manufacturing

concerns in Hong Kong was announced to-day (Thursday, November 8) by the

Commerce and Industry Department.

The aim of the scheme is to stimulate industrial development by

making loans available to buy new machinery and equipment.

"We have taken a fresh look at the original terms of the Loans

for Small Industry scheme, and modified procedures will come into immediate

effect," said Ir. Roy Porter, Assistant Director (Industry).

"The changes which have been made are quite minor but it is hoped

that they will nevertheless provide some new incentive to industrial

concerns to seek funds for modernising their factories, increasing their

efficiency and boosting their productive capacity."

The revised scheme has been drawn up on the advice of Loans for

Small Industry Committee and after consultation with the Trade and Industry

Advisory Board.

It is open to factories employing not more than 200 workers and

having not more than $1 million in proprietors' funds.

This means in effect that 97 per cent of Hong Kong's industrial

undertakings, of which there are more than 22,000, will be able to apply

for loans.

The minimum loan amount has been lowered to $30,000 to meet the

needs of smaller factories which require less expensive equipment and machinery.

The upper loan limit remains unchanged at $250,000.

/The range

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