Hong Kong’s SME Financing Guarantee Scheme will now offer a principal moratorium of up to 12 months to both existing and new borrowers.
This change, along with extended loan guarantee periods, aims to provide relief for small and medium-sized enterprises (SMEs) facing economic headwinds.
The maximum guarantee period for the 80% guarantee product has been increased to ten years, while the 90% guarantee product now extends to eight years.
Additionally, new loans under both products will have the option for partial principal repayment.
These measures are intended to help businesses navigate economic restructuring and maintain stability.
HKMC Insurance Limited will work with participating lenders to implement these changes, with a target rollout by November.
SMEs are encouraged to contact their lenders to discuss how these enhancements can benefit them.
These changes were announced in the Chief Executive’s 2024 policy address.
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