The Chinese University of Hong Kong (CUHK) Medical Centre is set to repay its 40-year government loan ahead of schedule, after previously delaying repayment twice. The university has formally proposed to the government that it will settle the HK$4.033 billion principal in full by March 19, 2027, according to documents submitted to the Legislative Council.
To make the early repayment possible, CUHK plans to provide a loan to the Medical Centre or act as a guarantor for its bank loans. It is intended to consolidate the necessary financial arrangements for the early settlement of the government loan, which was originally due to start repaying in 2028.
According to the document dated April 22, CUHK Medical Centre will still be required to provide public medical services, even after repaying the loan early. The Centre has confirmed it will meet its obligation to provide a specified number of inpatient bed days by 2037, which offsets interest that would have accrued during the previously extended repayment period.
The government has stated that it agrees in principle to the Medical Centre’s plan to complete repayment by March 19, 2027. Final details of the repayment arrangements, including the exact amount and the structure of financing by CUHK or external banks, are still under discussion and will require further government review.
In response, CUHK Medical Centre stated that it has submitted a proposal to the Health Bureau regarding the repayment plan, which will be discussed at the Legislative Council's Panel on Health Services meeting on May 8.
The Centre noted that it is wholly owned by CUHK, which holds ultimate responsibility for its operations. The university and the Medical Centre previously informed the government that the Centre’s financial position has stabilized through operational improvements and cost controls. As a result, the Medical Centre formally notified the government on April 22 of its intention to repay the loan in full ahead of schedule.
(Updated at 11.05pm)
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