Corporate borrowers get principal payment breakBusiness | 17 Apr 2020 3:11 pm
The Hong Kong Monetary Authority together with the Banking Sector SME Lending Coordination Mechanism has launched a pre-approved principal payment holiday scheme for eligible corporate customers.
The HKMA has has received support from all the 11 major lenders.
All corporate customers that have an annual sales turnover of HK$800 million or less — estimated to cover more than 80 percent of all corporate borrowers in Hong Kong — and that have no outstanding loan payments overdue for more than 30 days are eligible.
All loan principal payments of eligible customers falling due within a six-month period between May 1 and October 31, will be pre-approved for deferment.
Principal payments of loans including revolving facilities will generally be deferred by six months, whereas trade facilities, given their short-term nature, will be deferred by three months.
Eligible customers do not need to apply. Banks will begin informing eligible customers of the pre-approval. They only need to contact the bank within 14 days of the bank's notice to confirm the arrangements.
Syndicated loans or loans used to financing purchases of shares or other financial assets are not covered.