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FRIDAY, JULY 11, 1975
GOVT. BONDS BILL
UNDER A BILL GAZETTED TODAY THE LEGISLATIVE COUNCIL MAY AUTHORISE THE RAISING OF LOANS BY THE ISSUE OF HONG KONG DOLLAR DENOMINATED BONDS.
THESE POWERS MAY BE USED TO RAISE MONEY TO HELP OFFSET THE ESTIMATED $429 MILLION DEFICIT IN THE CURRENT FINANCIAL YEAR.
GOVERNMENT
THE LOANS (GOVERNMENT BONDS) BILL WILL ENABLE THE TO ISSUE BONDS FOR RAISING LOANS FOR SUCH PURPOSES AS MAY DE APPROVED BY RESOLUTION IN THE LEGISLATIVE COUNCIL.
THE BILL PROVIDES THAT THE POWER OF DETERMING THE PRICE AND DENOMINATION OF GOVERNMENT DONDS AND THE RATE OF INTEREST PAYABLE ON THEM WILL BE VESTED WITH THE GOVERNOR.
THE RAISING OF MONEY THROUGH THE ISSUE OF HONG KONG DOLLAR DENOMINATION WAS MENTIONED BY THE FINANCIAL SECRETARY IN HIS DUDGET SPEECH LAST FEBRUARY ALONG WITH OTHER PROPOSALS TO FINANCE THE PROJECTED DEFICIT.
A GOVERNMENT SPOKESMAN SAID TODAY THAT SUBJECT TO NECESSARY AMENDMENTS TO THE INLAND REVENUE ORDINANCE BEING APPROVED, IT WAS INTENDED THAT BONDS ISSUED UNDER THE BILL WOULD BE FREE OF INTEREST TAX.
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THERE IS ALSO PROVISION IN THE BILL FOR BONDS ISSUED UNDER THE HONG KONG (REHABILITATION) LOAN ORDINANCE TO BE EXCHANGED FOR GOVERNMENT BONDS ON AGREED TERMS AND CONDITIONS.
THE BILL ALSO EXEMPTS GOVERNMENT BONDS FROM STAMP DUTY.
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