Rebeca Moen
Nov 18, 2024 06:51
The Hong Kong Monetary Authority announces enhancements to the SME Financing Guarantee Scheme, including a 12-month principal moratorium and extended loan guarantee periods.
HKMC Insurance Limited, under the Hong Kong Monetary Authority, has announced significant enhancements to the SME Financing Guarantee Scheme (SFGS), which are set to take effect on November 18, 2024. These measures, outlined in the Chief Executive’s 2024 Policy Address, aim to support small and medium enterprises (SMEs) facing economic challenges.
Key Enhancements to the Scheme
The revamped SFGS introduces a principal moratorium option, allowing borrowing enterprises to defer principal repayments for up to 12 months. This option is available for both existing and newly issued loans, with the application period spanning until November 17, 2025. Additionally, the loan guarantee periods for the 80% and 90% Guarantee Products are extended by three years, now covering ten years and eight years respectively. New loans under these products will also benefit from partial principal repayment options.
Objective and Impact
The enhancements are designed to alleviate financial pressures on SMEs, providing them with the necessary flexibility to navigate the ongoing economic restructuring. By extending the repayment periods and offering moratorium options, the scheme aims to stabilize the financial footing of enterprises amidst fluctuating market conditions.
How to Apply
Eligible enterprises interested in these new measures are encouraged to contact participating lenders to discuss specific arrangements. Detailed information about the application process and requirements can be found on the SFGS website.
These strategic enhancements underscore the Hong Kong Monetary Authority’s commitment to bolstering the SME sector, which plays a pivotal role in the region’s economic landscape.
Image source: Shutterstock
