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WEDNESDAY, MAY 31, 1989
HKECIC MAXIMUM LIABILITY RAISED TO $6,000 MILLION
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THE MAXIMUM CONTINGENT LIABILITY OF THE HONG KONG EXPORT CREDIT INSURANCE CORPORATION WAS RAISED BY $1,000 MILLION TO $6,000 MILLION BY RESOLUTION OF THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
A MOTION SEEKING THE INCREASE WAS MOVED BY THE ACTING FINANCIAL SECRETARY, THE HON DAVID NENDICK.
FEBRUARY
#800
MR NENDICK EXPLAINED THAT IN
LAST YEAR THE CORPORATION'S MAXIMUM CONTINGENT LIABILITY HAD BEEN INCREASED BY MILLION, TO $5,000 MILLION.
OF
"SINCE THEN, THE CORPORATION'S LIABILITY UNDER CONTRACTS INSURANCE HAS RISEN AT A RATE OF ABOUT $130 MILLION PER QUARTER. AS AT MARCH 31, 1989, THE FIGURE STOOD AT $4,682 MILLION, HE SAID.
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"IN ADDITION, THERE IS POTENTIAL COMMITMENT IN RESPECT OF NEW POLICIES AND POLICIES PENDING RENEWAL TOTALLING $152 MILLION, LEAVING ONLY $166 MILLION FOR NEW BUSINESS.
"GIVEN THIS RATE OF INCREASE, THE CORPORATION'S ADVISORY BOARD ESTIMATES THAT THE EXISTING STATUTORY LIMIT MAY BE REACHED SHORTLY.
"IT HAS THEREFORE RECOMMENDED
THAT THE MAXIMUM CONTINGENT LIABILITY CEILING BE INCREASED BY $1,000 MILLION TO $6,000 MILLION, MR NENDICK SAID.
I
HE POINTED OUT THAT FAILURE TO RAISE THIS LIMIT COULD RESULT IN THE CORPORATION HAVING TO TURN AWAY FURTHER BUSINESS AND HENCE ΤΟ DISCOURAGE OUR EXPORTS.
"I WOULD LIKE ΤΟ STREES THAT THE MAXIMUM LIABILITY IS A THEORETICAL CONTINGENT AMOUNT. IT IS NEVER LIKELY TO BE AT RISK AS A WHOLE AT ANY ONE TIME, HE ADDED.
FT
SUMMARY OF CHANGES MADE TO THIRD QUARTER ESTIMATES
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A SUMMARY OF ALL CHANGES MADE то THE APPROVED ESTIMATES OF EXPENDITURE FOR THE THIRD QUARTER OF THE 1988-89 FINANCIAL YEAR WAS TABLED IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) BY THE ACTING FINANCIAL SECRETARY, THE HON DAVID NENDICK,
SUPPLEMENTARY PROVISION OF $264.7 MILLION WAS APPROVED, MR
NENDICK SAID.
CHINA.
"THIS INCLUDED $151 MILLION FOR THE PURCHASE OF WATER FROM
"THE PROVISION