'No plans to introduce 100pc loan guarantee for SMEs'
Secretary for Commerce and Economic Development Algernon Yau on Saturday said the authorities have no plans to roll out a 100 percent loan guarantee scheme for small and medium enterprises (SMEs) again. His comments came after the Hong Kong Monetary Authority on Friday announced details about establishing a new task force to help SMEs deal with their loan payments. The government launched a special 100 percent loan guarantee scheme during the pandemic to help SMEs cope with cash flow problems. Speaking on a radio programme, the minister said it was a "special measure" during the Covid-19 pandemic, and about HK$140 billion was approved. "The economy is gradually recovering now, if a 100 percent loan guarantee is maintained, it would be a great burden on the government. We will closely monitor the situation, but we don't have any plans to roll out the scheme again in the meantime," he said. Yau said the government needs "careful consideration", as the default rate of the scheme reached 9.2 percent, which means the default amount was HK$13.2 billion. Asked about the SAR's economic and trade offices (ETOs) being suppressed by the United States and western countries, Yau said the government had a determined stance. "There were voices from the United States and western countries asking to shut down our ETOs. But we should continue with our work, and shouldn't retreat just because of some opinions," he said. "At this stage, the ETOs are running normally. The countries still haven't had further action, so we shouldn't retreat. They're just scaring us, and we shouldn't kneel down."