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WEDNESDAY, APRIL 3, 1985
THE AMENDMENTS PROPOSED WERE OF A PURELY TECHNICAL NATURE AND HAD BEEN DRAFTED, ON LEGAL ADVICE, TO BRING THE WORDING OF CLAUSE 18 OF THE BILL MORE IN LINE WITH THAT OF CLAUSE 16 AND CORRESPONDING PROVISIONS IN THE BANKRUPTCY ORDINANCE.
NO CHANGE OF SUBSTANCE IN THE INTENTION OF THE BILL WAS INVOLVED, HE SAID.
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RISING EXPORTS BOOST INSURANCE COVERAGE
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THE EXPORT CREDIT INSURANCE CORPORATION'S CONTINGENT LIABILITY WAS INCREASED BY $700 MILLION TO $4 200 MILLION, IN LINE WITH EXPORT GROWTH, BY APPROVAL OF THE LEGISLATIVE COUNCIL TODAY.
SPEAKING ON THE MOTION, THE SECRETARY FOR TRADE AND INDUSTRY, THE HON E.P. HO, SAID THAT WITH EXPORTS GOING WELL, THE CONTINGENT LIABILITIES OF THE CORPORATION WERE INCREASING AT THE RATE OF ABOUT $140 MILLION A QUARTER.
+ IN THE CIRCUMSTANCES, THE CORPORATION'S ADVISORY BOARD CONSIDERS THAT THE EXISTING STATUTORY LIMIT MAY BE REACHED BEFORE THE END OF THE CURRENT FINANCIAL YEAR.
+IT HAS JUST ADVISED THAT THE MAXIMUM CONTINGENT LIABILITY SHOULD BE INCREASED BY $700 MILLION TO $4 200 MILLION, HE SAID.
FAILURE TO RAISE THE LIMIT, MR HO SAID, COULD RESULT IN THE CORPORATION HAVING TO TURN AWAY FURTHER BUSINESS AND DISCOURAGE EXPORTS.
ON THE BASIS OF THE USUAL GEARING OF THREE, UP TO $233 MILLION WOULD HAVE TO BE SET ASIDE FROM THE FREE FISCAL RESERVES AS COVER FOR THE ADDITIONAL CONTINGENT LIABILITY, HE SAID.
THE MAXIMUM LIABILITY, MR HO STRESSED, WAS A THEORETICAL AMOUNT, NEVER LIKELY TO BE AT RISK AT ANY ONE TIME.
HE RECALLED THAT THE MAXIMUM CONTINGENT LIABILITY OF THE CORPORATION HAD BEEN INCREASED BY $500 MILLION TO $3 500 MILLION IN APRIL LAST YEAR.
DURING THE PAST YEAR, THE CORPORATION'S LIABILITY UNDER CONTRACTS OF INSURANCE HAD RISEN BY $560 MILLION AND AT THE END OF JANUARY THIS YEAR STOOD AT $3 317 MILLION, HE SAID.
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