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FRIDAY, MAY 2, 1975.
NEW BILL TO ENABLE GOVERNMENT TO RAISE LOANS
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THE GOVERNMENT WILL BE ABLE TO RAISE LOANS TO FINANCE THE 1975-76 DEFICIT BUDGETTED BY THE FINANCIAL SECRETARY IF DRAFT LEGISLATION PUBLISHED IN TODAY'S (FRIDAY) GAZETTE IS PASSED BY THE LEGISLATIVE COUNCIL.
THE NEED TO BORROW MONEY OVER THE NEXT FEW YEARS WAS STATED BY THE FINANCIAL SECRETARY. MR. PHILIP. HADDON-CAVE IN HIS BUDGET SPEECH. IN IT HE MENTIONED THAT THE AIM WOULD BE TO BORROW AS CHEAPLY AS POSSIBLE AND +FOR OUR REQUIREMENTS IN 1975-76 WE ARE CURRENTLY AND ACTIVELY CONSIDERING SEVERAL POSSIBILITIES.+
AMONG THESE POSSIBILITIES ARE THE THREE SOURCES OF" BORROWING THE EURO-CURRENCY MARKET, SUPPLIERS' CREDITS AND PRIVATE PLACEMENTS FOR WHICH LEGAL AUTHORITY IS NOW BEING SOUGHT BY THE NEW BILL.
UNDER THE BILL, KNOWN AS THE LOANS BILL 1975, THE GOVERNMENT WILL BE GIVEN LEGISLATIVE AUTHORITY TO BORROW MONEY FOR ANY PURPOSE SUBJECT TO APPROVAL BY RESOLUTION OF THE LEGISLATIVE COUNCIL.
THIS WILL PROVIDE THE NECESSARY POWER AND AUTHORITY TO BORROW MONEY IN THE EURO-CURRENCY CREDIT MARKET AND THROUGH LINES OF CREDIT AND OTHER SIMILAR FACILITIES. AT THE SAME TIME. LOAN AGREEMENTS ARE ALSO REQUIRED BY THE BILL TO DE LAID BEFORE THE COUNCIL AS SOON AS PRACTICABLE.
THE GOVERNMENT WILL ALSO BE EMPOWERED BY THE BILL TO ISSUE SUCH BONDS, PROMISSORY NOTES AND OTHER INSTRUMENTS AS MAY BE NECESSARY TO GIVE EFFECT TO A LOAN AGREEMENT.
ANOTHER PROVISION OF THE BILL STIPULATES THAT THE LOAN PROCEEDS. AFTER DEFRAYING ANY EXPENSES INCURRED IN RAISING THE LOAN WILL HAVE TO BE APPLIED TO THE PURPOSE FOR WHICH THEY WERE BORROWED.
IT ALSO ENABLES EXPENDITURE FOR A PROJECT IN RESPECT OF WHICH NO PROVISION IS MADE IN THE ESTIMATES TO BE MET INITIALLY FROM GENERAL REVENUES WHERE LOAN FUNDS ARE NOT IMMEDIATELY AVAILABLE WITH SUBSEQUENT RE-IMBURSEMENT FROM THE LOAN FUNDS WHEN RECEIVED. THE REPAYMENT OF A LOAN IS CHARGED BY THE BILL UPON THE GENERAL REVENUES AND ASSETS OF HONG KONG.
IF PASSED, THE BILL WILL ENABLE THE GOVERNOR TO REMIT ANY TAX, DUTY, CHARGE OR FEE IN RESPECT OF A LOAN AGREEMENT AND ANY OTHER INSTRUMENTS CONNECTED WITH THE BORROWING.
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