TNAG-2425-FCO40-3527-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 67

of

their

tax

advantages

and

easy

administration.

debt

Given the present state of the

market in Hong Kong, there would be

demand for the securitised debts.

insufficient

In order to create a demand for the securitised

debt instruments, the consultant suggested that

the

new

private sector pension legislation

should stipulate a requirement that the

approved private pension schemes shall maintain

at least 50% of their assets in Hong Kong

dollars.

Interest Rate Guarantee

12.

event

The

Consultant

recommended that funds could be

month paper on a rolling basis, the

raised by issuing six

proceeds of which would be converted into US dollars. In the

that the Hong Kong dollar interest rate on the

borrowings exceeded the US dollar yield in the investments by

more than an agreed margin, the Hong Kong Government could

guarantee to absorb the excess cost of the borrowing.

13.

In order

liability on any

to limit the Hong Kong Government's

guarantee, the consultant recommended a 2

trigger-point system be established :

•