10
WEDNESDAY, MARCH 6, 1991
SHORT TERM GOVT BONDS TIMELY FOR HK
* * * * *
TODAY
NOW
JACOBS, PIERS SIR THE HON SECRETARY, FINANCIAL THE
BORROWING MANAGED AND STRUCTURED A WELL SAID THAT (WEDNESDAY) PROGRAMME THROUGH THE ISSUE OF SHORT TERM GOVERNMENT BONDS WOULD BE APPROPRIATE FOR HONG KONG.
THE FINANCIAL STRESSED THAT THE GOVERNMENT'S GUIDELINES WOULD ENSURE THAT IT
TO UNDER ANY CIRCUMSTANCES BE BORROWING NOT EXPENDITURE, ALTHOUGH MANY COUNTRIES DID.
SECRETARY, IN PRESENTING
HIS
1991-92 BUDGET,
FUND
WOULD RECURRENT
FROM
"THE CONSEQUENCES OF IMPRUDENT BORROWING ARE ALL TOO
OF OTHERS, WHO EXPERIENCE THE SERVICING OBLIGATIONS REVENUES.
APPARENT
OF
BY DEBT RECURRENT
ARE
BURDENED OFTEN WHICH PRE-EMPT TOO LARGE A PART
NEW BORROWING
"IT IS MY INTENTION THAT THE PROCEEDS OF THIS PROGRAMME WILL BE FOR THE CAPITAL INVESTMENT FUND OR FOR THE CAPITAL WORKS RESERVE FUND, AND WILL ACCORDINGLY BE USED CLEARLY AND ONLY CAPITAL PROJECTS,
17
HE SAID.
FOR
FUND
COMMENCE HANDLED
PROGRAMME WERE SECRETARY SAID DETAILS OF THE FINANCIAL THE BEING WORKED OUT BY THE NEWLY ESTABLISHED OFFICE OF THE EXCHANGE AT THE MONETARY AFFAIRS BRANCH, ADDING THAT HE WOULD LIKE TO FAIRLY SOON THE DEVELOPMENT OF THE PROGRAMME, WHICH WOULD BE BY THE OFFICE OF THE EXCHANGE FUND, AND THAT PROPOSALS WOULD BE PUT TO THE LEGISLATIVE COUNCIL DURING THE COURSE OF THE YEAR.
AS A STRATEGY OF GOVERNMENT BORROWING OPTION ON THE FINANCING HONG KONG'S MAJOR INFRASTRUCTURAL PROJECTS, SIR PIERS
THIS CONNECTION, HEALTHY RESERVES REASSURED POTENTIAL LENDERS INVESTORS.
FOR
SAID
AND
"BORROWING FOR CAPITAL DEVELOPMENT IS ELSEWHERE PERFECTLY ACCEPTABLE AND CONVENTIONAL APPROACH.
CONSIDERED
A
HONG
KONG IS NO "INDEED, THERE CAN BE FEW GOVERNMENTS OR LARGE ORGANISATIONS IN WORLD THE
WHO DO NOT BORROW FOR THIS PURPOSE. STRANGER TO THE CONCEPT.
"THE MASS TRANSIT RAILWAY CORPORATION IS ALREADY A BORROWER OF HIGH INTERNATIONAL REPUTE," HE SAID.
SUBSTANTIAL
MODEST
THE GOVERNMENT ITSELF HAD ALSO ON OCCASIONS INCURRED A AMOUNT OF DEBT, FOR EXAMPLE, BORROWING FROM THE ASIAN DEVELOPMENT BANK 'TO ASSIST IN FINANCING CERTAIN SPECIFIC PROJECTS, AND IN 1976 AND 1984 THE GOVERNMENT ISSUED BONDS TO ASSIST IN FUNDING PART OF THE WORKS PROGRAMME.
CAPITAL
OUTSTANDING
"THESE BORROWINGS HAVE BEEN FULLY REPAID AND THERE IS GOVERNMENT DEBT OTHER THAN THAT IN THE FORM
OF
FUND BILLS,
ARE WHICH
TO ISSUED
FACILITATE
EFFECTIVE
NOW EXCHANGE MONETARY
NO
MANAGEMENT, SIR PIERS SAID.
/"THIS LATTER