by Mary Swire, Tax-News.com, Hong Kong
03 Feb 2012
The Hong Kong Mortgage Corporation Limited (HKMC) has announced that it will shortly find capitulation to launch a microfinance commander intrigue with a hearing duration of 3 years, from mid-2012.
At a ask of a Financial Secretary, John C Tsang, a HKMC shaped a
investigate organisation in 2011, with members drawn from opposite sectors (including the
banking industry, intentional agencies, academia and a Government) and chaired
by a Executive Director of a HKMC and a Deputy Chief Executive of the
Hong Kong Monetary Authority, Peter Pang.
The investigate organisation examined a feasibility of substantiating a tolerable microfinance
intrigue in Hong Kong and submitted a investigate news to a Financial Secretary
in Aug 2011.
It was pronounced that abroad knowledge indicated that a successful and sustainable
microfinance intrigue would yield extensive support to assistance boost a credit
station of borrowers, so that they could obtain bank loans during a relatively
reduce seductiveness rate. Such a complement would also support borrowers, for example,
to rise their business skeleton and yield entrepreneurial training.
The investigate organisation endorsed that a due microfinance intrigue in Hong Kong
should be self-sustaining in a long-run; should not work as a amicable welfare
hand-out; borrowers contingency have a eagerness to repay a loans; for micro-business
start-up and self-employment, borrowers will need to benefaction viable business
plans; and borrowers should have a ability to exercise their business plans.
According to a rough horizon suggested by a investigate report, a pilot
intrigue should support to 3 categories of borrowers – those determined to start
adult their possess businesses, those wishing to turn self-employed, and those wanting
to grasp self-enhancement by training, a upgrading of skills or securing
veteran certification.
The limit loan volume for any loan in these categories will be HKD300,000
(USD38,700), HKD200,000 and HKD100,000 respectively. The limit loan tenor
will be 5 years. For loan tenors of adult to 3 years, a amends holiday
of 6 months will be provided; and, for loan tenors of over 3 years and
adult to 5 years, a amends holiday of 12 months will be applicable.
All borrowers would need to be Hong Kong residents, aged 18 or over, with no
failure record and an excusable credit history.
After deliberation a report, a Financial Secretary announced in a 2012-13
Budget a ask for a HKMC to prepare with banks, intentional agencies
and other stakeholders to lift out a tolerable microfinance commander scheme
formed on blurb principles, with a indeterminate total loan volume of HKD100m.
Relevant subordinate and support services should also be supposing to raise the
viability of a scheme.
The HKMC reliable that it welcomed a proclamation by a Financial Secretary,
and that it is actively conducting a basic work, including discussions
with banks and applicable bodies to work out a sum of a intrigue such as
a seductiveness rate level, focus and capitulation procedures, and ancillary
services.
Pang combined that, “there are many in Hong Kong who aspire to set adult their
possess businesses or raise their skills. While a start-up appropriation indispensable may
not indispensably be substantial, many mostly find it formidable to steal from
a normal financing channels to realize their growth potential. The
HKMC will work closely with stakeholders such as banks and intentional agencies
to rise a centralised microfinance height to assistance these people obtain microfinance.”
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Tags: hong kong