WEDNESDAY, JULY 17, 1991
THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID THIS IN A STATEMENT JE MADE IN THE LEGISLATIVE COUNCIL TODAY REGARDING THE BANK OF CRED AND COMMERCE HONG KONG LIMITED.
SIR PIERS EMPHASISED THAT IT WAS THE GOVERNMENT'S INTENTION THAT RELIEF SHOULD BE MADE AVAILABLF IN THE SHORTEST POSSIBLE TIME.
THE FINANCIAL SECRETARY SAID AFTER CONSIDERING THE REPORT MADE BY THE COMMISSIONER OF BANKING THIS MORNING ΤΟ THE GOVERNOR IN COUNCIL AND TAKING THE ADVICE OF THE EXECUTIVE COUNCIL MEMBERS, THE GOVERNOR IN COUNCIL HAD DIRECTED HIM TO PETITION THE HIGH COURT FOR THE WINDING UP OF THE BANK OF CREDIT AND COMMERCE HONG KONG LIMITED AND ITS SUBSIDIARY DEPOSIT-TAKING COMPANY, BCCI FINANCE INTERNATIONAL LTD (WHICH WOULD BE REFERRED ΤΟ HEREAFTER TOGETHER AS "THE INSTITUTIONS").
THE GOVERNMENT WAS TAKING SUCH STEP BECAUSE IT BELIEVED BE IN THE ULTIMATE INTERESTS OF DEPOSITORS, SIR PIERS EXPLAINED.
"THEIR INTERESTS REMAIN OUR PRIME CONCERN.
IT ΤΟ
"WE HAD HOPED THAT, OVER THE PERIOD SINCE THE BCCI GROUP'S PROBLEMS FIRST BECAME KNOWN, A SUITABLE PURCHASER WOULD BE FOUND, " HE SAID.
REGRETTABLY, SIR PIERS SAID DESPITE CONSIDERABLE EFFORTS OVER
THE LAST WEEK OR SO, THIS HAD NOT HAPPENED.
SIR PIERS POINTED OUT THAT PETITIONING FOR LIQUIDATION DID NOT PRECLUDE THE EVENTUAL SALE OF THE INSTITUTIONS, BUT HE DID NOT SEE ANY IMMEDIATE PROSPECT OF THAT.
SIR PIERS SAID IN ALL THE CIRCUMSTANCES SURROUNDING THIS UNHAPPY AFFAIR AND AFTER THE MOST CAREFUL CONSIDERATION, IT WAS DECIDED THAT THIS WAS NOT A SUITABLE CASE FOR USE OF THE EXCHANGE FUND TO RESCUE THE BANK.
FURTHERMORE, THE FINANCIAL SECRETARY ADDED THAT A DECISION TO OPEN THE BANK WITHOUT SATISFACTORY FINANCIAL SUPPORT WOULD NOT HAVE WORKED.
WOULD
"THOSE DEPOSITORS FIRST IN THE QUEUE TO GET THEIR MONEY HAVE BENEFITTED AT THE COST OF THE LESS FORTUNATE WHO MIGHT HAVE GOT NOTHING.
"ONLY AN ORDERLY LIQUIDATION WILL ENSURE FAIRNESS TO ALL,' SIR PIERS SAID.
SIR PIERS ALSO SAID IT WAS A MATTER OF THE GREATEST REGRET THAT THESE INSTITUTIONS, DESPITE PERFECTLY ADEQUATE SUPERVISION IN HONG KONG, -SHOULD HAVE BEEN PUT IN JEOPARDY BY EVENTS OUTSIDE HONG KONG OVER WHICH THE GOVERNMENT HAD NO CONTROL.
ELSEWHERE BRANCHES AND SUBSIDIARIES HAD CLOSED AND PROCEEDINGS HAD BEEN TAKEN OR WERE IN CONTEMPLATION LEADING ΤΟ LIQUIDATION, SIR PIERS NOTED.
IN
"ALTHOUGH THIS PROVIDES SCANT CONSOLATION, WE ARE NOT ALONE THE PROBLEMS FROM WHICH WE ARE
FINANCIAL SECRETARY
SUFFERING,
-
THE
ADDED.
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