TUESDAY, AUGUST 12, 1975
EK CORROWS $17 M. FROM EURODOLLAR HARKET
X X X X
THE HONG KONG GOVERNMENT AND LLOYDS BANK INTERNATIONAL HAVE SIGNED AN AGREEMENT FOR THE PROVISION OF A EURODOLLAR -LOAM FOR THE EQUIVALENT OF ABOUT HK$17 MILLION FOR THE PURCHASE OF NEW COINAGE.
THE NEW COINAGE, WHICH WILL CONSIST OF $2 AND 20 CENTS PIECES, IS BEING PURCHASED FROM THE ROYAL MINT, AND WILL BE INTRODUCED INTO CIRCULATION LATER THIS MONTH.
THIS IS THE FIRST TIME THE GOVERNMENT HAS MADE A BORROWING FROM THE EUROCURRENCY MARKET.
IN HIS BUDGET SPEECH EARLIER THIS YEAR, THE FINANCIAL SECRETARY NOTED SEVERAL WAYS IN WHICH HONG KONG'S LUNGET DEFICIT COULD BE COVERED BY LOAN FINANCE. AMONG THESE ALTERNATIVES RECOURSE TO THE EUROCURRENCY CREDIT MARKET WAS MENTIONED, TOGETHER WITH A GUARANTEED LINE OF CREDIT TO FINANCE THE PURCHASE OF GOODS AND SERVICES IN THE UNITED KINGDOM,
THE NECESSARY APPROVALS FOR THE COINAGE LOAN AND THE ASSOCIATED LINE OF CREDIT TO FINANCE THE PURCHASE OF GOODS AND SERVICES IN THE UNITED KINGDOM WERE GIVEN BY LEGISLATIVE COUNCIL IN JUNE, IN AUTHORISING THE GOVERNMENT TO CONCLUDE AGREEMENTS TO DORROW THE EQUIVALENT OF 6.5 MILLION POUNDS (APPROXIMATELY HK$73.5 MILLION) FOR GENERAL REVENUE PURPOSES.
THE HK$17 MILLION COINAGE LOAN THUS REPRESENTS THE FIRST PART OF A LARGER FUND RAISING PROJECT DEING DISCUSSED BY THE GOVERNMENT WITH LBI.
THE NEW $2 AND 20 CENTS COINS, LIGHTER THAN THE PRESENT $1 AND 10 CENTS PIECES, WILL MAKE CASH TRÀNSACTIONS EASTER AND SIMPLER AND WILL PROVIDE A WIDER RANGE OF COINS FOR MAKING PAYMENT. EVENTUALLY, THE COST OF INTRODUCING THE NEW RANGE IS LIKELY TO BE MORE THAN OFFSET BY THE METAL VALUE OF THE EXISTING COINS WITHDRAUN FROM CIRCULATION.
12.
t
:
P