XN000022-1994-05-26 — Page 8

THURSDAY, MAY 26, 1994

RETAIN ITS EFFICIENCY

IT WILL BE GIVEN THE FINANCIAL FLEXIBILITY TO REVENUE TO FINANCE ITS ACTIVITIES AND TO INVEST IN IMPROVEMENT PROJECTS, SUBJECT TO THE MEETING OF CERTAIN PRESCRIBED OPERATING AND FINANCIAL TARGETS.

MR PAGLIARI SAID IN RECENT YEARS THE POST OFFICE HAD NOT BEEN ABLE TO COMPETE SUCCESSFULLY AGAINST OTHER GOVERNMENT PROGRAMMES FOR ALLOCATION OF RESOURCES NECESSARY TO DEVELOP ITS SERVICES AND MAINTAIN ITS HIGH SERVICE STANDARDS.

THE LIMITED RESOURCES OBTAINED HAVE BEEN DEPLOYED TO MEET THE DEMAND FOR BASIC SERVICES LIKE LETTERS AND PARCELS, AT THE EXPENSE OF THE PROMOTION AND DEVELOPMENT OF PROFITABLE PREMIUM SERVICES, ADDED.

HE

AS A RESULT, THE POST OFFICE HAS BEEN FORCED TO DAMPEN DEMAND FOR SUCH SERVICES LIKE SPEEDPOST.

THIS AFFECTS THE OVERALL PROFITABILITY OF THE POST OFFICE AND PRODUCES PRESSURE FOR COMPENSATORY INCREASES IN BASIC POSTAGE RATES.

ALSO, A LACK OF RESOURCES IMPLIES DIFFICULTIES IN MAINTAINING A HIGH STANDARD OF SERVICE, HE SAID.

SPEEDPOST SERVICE IS NOW AVAILABLE FOR 62 1993/94, 4.3 MILLION SPEEDPOST ITEMS WERE HANDLED, PER CENT INCREASE OVER THE YEAR BEFORE.

COUNTRIES. DURING

REPRESENTING 5.1

RESIDENTIAL MORTGAGE SURVEY RESULTS FOR APRIL

THE

GROWTH

IN RESIDENTIAL MORTGAGE LENDING CONTINUED TO ACCELERATE IN APRIL, ACCORDING TO THE LATEST MONTHLY SURVEY OF THE HONG KONG MONETARY AUTHORITY (HKMA).

THERE ARE HOWEVER SIGNS THAT THE FLOW OF NEW MORTGAGE APPLICATIONS SLOWED IN MAY.

GROSS NEW LENDING BY THE 33 INSTITUTIONS IN THE SURVEY FELL SLIGHTLY DURING APRIL, FROM $9.6 BILLION TO $9.4 BILLION. HOWEVER, REPAYMENTS FELL MORE SHARPLY WITH THE RESULT THAT THE TOTAL AMOUNT OF OUTSTANDING MORTGAGE LENDING GREW BY 1.7% IN APRIL (1.3% IN MARCH) FROM $227.0 BILLION TO $231.0 BILLION.

THE ANNUALISED RATE OF GROWTH IN LENDING OVER THE LAST THREE MONTHS HAS RISEN TO 17.7% FROM 15.1% IN THE THREE-MONTH PERIOD TO MARCH. THE 12-MONTH AVERAGE OF OUTSTANDING LENDING STANDS AT AN ANNUALISED GROWTH RATE OF 17.7%, THE SAME AS IN MARCH.

IN

"THE LATEST FIGURES SHOW THAT THE REPORTED SLOWDOWN IN ACTIVITY THE RESIDENTIAL MORTGAGE MARKET WHICH OCCURRED AFTER THE ANNOUNCEMENT OF THE GOVERNMENT INITIATIVE TO DAMPEN PROPERTY PRICES HAS NOT YET BEEN REFLECTED IN THE BANK LENDING FIGURES, THE DEPUTY CHIEF EXECUTIVE (BANKING) OF THE HÊMA, MR DAVID CARSE, SAID.

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