REPORT ON THE TRADE LOAN.
The purpose of this Loan was to assist local merchants and others during a period of exceptional financial stringency. The necessary funds were obtained by borrowing in London from the Straits Settlements Government, the West African Commissioners and the Hong Kong and Shanghai Banking Corporation sums totalling £1,800,000, security being afforded to the lenders by Ordinance No. 13 of 1926 which made the Loan a charge against the Colony's Revenue.
Loans were issued locally on the security of mortgages on lands or shares with two or three exceptions. A Committee appointed for the purpose received applications and made their recommendations as a result of which 278 loans were issued, the first being made on 16th November, 1925.
All loans were limited to a period of two years and a number fell due for repayment in the latter part of the year under review. It was decided however, to refrain from applying any undue pressure to borrowers in view of the fact that although the financial situation had improved considerably there still existed a stringency which warranted the renewal of many loans on a month to month basis.
On the other hand a number of mortgagors found it convenient to effect repayment before the expiry of two years and the extent to which this was done is shown in the following tables.
Foreclosure was resorted to in only one instance and no loss was sustained in this connection.
Total of Loans issued in Hong Kong from 16th November, 1925 on the security of Mortgages $15,624,588.46
Less redemption effected during the year:— 1926 $2,604,930.00 1927 $4,845,879.76 Total $7,450,809.76 Total of Loans outstanding on 31st Dec. 1927 $8,173,778.70 Less amount written off as Irrecoverable $70,883.70 Total of Loans outstanding on 31st Dec. 1927 $8,102,895.00 Overdraft with Hong Kong & Shanghai Bank on 31st Dec. 1927 $7,638,676.65—A (1) 7
REPORT ON THE TRADE LOAN.
The purpose of this Loan was to assist local merchants and others during a period of exceptional financial stringency. The necessary funds were obtained by borrowing in London from the Straits Settlements Government, the West African Commis- sioners and the Hong Kong and Shanghai Banking Corporation sums totalling £1,800,000, security being afforded to the lenders by
Ordinance No. 13 of 1926 which made the Loan a charge against the Colony's Revenue.
Loans were issued locally on the security of mortgages on lands or shares with two or three exceptions. A Committee appointed for the purpose received applications and made their recommendations as a result of which 278 loans were issued, the first being made on 16th November, 1925.
All loans were limited to a period of two years and a number fell due for repayment in the latter part of the year under review. It was decided however, to refrain from applying any undue pressure to borrowers in view of the fact that although the financial situation had improved considerably there still existed a stringency which warranted the renewal of many loans on a month to month basis.
On the other hand a number of mortgagors found it con- venient to effect repayment before the expiry of two years and the extent to which this was done is shown in the following tables.
Foreclosure was resorted to in only one instance and no loss was sustained in this connection.
Total of Loans issued in Hong Kong from 16th
November, 1925 on the security of Mortgages $15,624,588.46
Less redemption effected during the year:—
1926
1927
$2,604,930.00
4,845,879.76
7,450,809.76
Total
8,173,778.70
70,883.70
Dess amount written off as Irrecoverable
Total of Loans outstanding on 31st Dec. 1927 $ 8,102,895.00
Overdraft with Hong Kong & Shanghai Bank
on 31st Dec. 1927
$ 7,638,676.65
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