TNAG-1725-FCO40-2438-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 84

Appendix C

CONTINGENT LIABILITIES AS AT 31 MARCH 1987

A contingent liability is defined as a liability arising from a condition or situation which exists at the year end, where the amount of the liability, if any, and its timing will depend on the occurrence or non-occurrence of one or more uncertain future events.

2 The Government's contingent liabilities as at 31 March 1987 are listed below. The approximate maximum potential amount of each liability as at that date is indicated in brackets. It is not an assessment of actual risk. (1) Capital subscription to Asian Development Bank ($671.8 million);

(2) Outstanding currency notes demonetized under the Dollar and Subsidiary Currency Notes Ordinance

(Cap. 67) ($10.2 million);

(3) One cent notes issued under Section 4(1) of the Dollar and Subsidiary Currency Notes Ordinance (Cap. 67)

($1 million);

(4) Gold coins issued in accordance with L.N. 97 of 1975 ($369.7 million);

(5) A guarantee on notes issued by the Hong Kong Building and Loan Agency Ltd. ($320 million);

(6) All moneys which may become due by the Hong Kong Export Credit Insurance Corporation under contracts

of insurance ($3,710 million);

(7) Guarantees in respect of the repayment of loans made to and the discharge of indebtedness of the Mass Transit Railway Corporation under the facilities specified in the Schedules to L.N. 242 of 1975 and L.N. 105 of 1978 ($5,860.7 million);

(8) A guarantee in respect of the reimbursement of costs incurred by the Mass Transit Railway Corporation

arising from the possible extension of the mass transit railway to Junk Bay ($2 million);

(9) Possible equity injections to the Mass Transit Railway Corporation to be made on or after 31 December

1989 ($2,500 million);

(10) Full and partial default guarantees in respect of mortgage loans made by banks and other financial institutions under the Home Ownership Scheme and the Private Sector Participation Scheme ($5,774.4 million);

(11) A guarantee in respect of the reimbursement to the developers of the projects under the Private Sector Participation Scheme for unsold flats and flats sold at a price below the stipulated average price ($3,365.7 million);

(12) A guarantee under Section 13 of the Kowloon-Canton Railway Corporation Ordinance (Cap. 372) in respect of the repayment of the principal of, the payment of interest on, and the discharge of any other financial obligation in connexion with any sums borrowed by the Kowloon-Canton Railway Corporation ($500 million);

(13) A guarantee in respect of a commercial loan to the City Polytechnic of Hong Kong for the acquisition of

temporary premises ($240 million);

(14) A guarantee in respect of a commercial borrowing facility for the Hong Kong Nuclear Investment

Company Ltd. ($255 million);

(15) Outstanding New Territories Land Exchange Entitlements (Letters A/B) (estimated monetized value of

$3,025 million);

(16) Outstanding litigation ($1,251 million).

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