Hong Kong's "Small and Medium Enterprise Financing Guarantee Program" optimization measures take effect, allowing for a maximum of 12 months of interest-only repayment without principal repayment.

On November 18, Hong Kong Deposit Protection Insurance Corporation announced that the optimization measures related to the "Small and Medium Enterprise Financing Guarantee Scheme" in the "Policy Address for 2024" will take effect from today (November 18). The measures allow borrowing enterprises under the scheme to "pay interest without repaying the principal" for up to 12 months for existing and new loan applications, with the application period lasting for 12 months until November 17, 2025. Additionally, the maximum loan guarantee period for credit guarantee products with an 80% and 90% guarantee has been extended by 3 years to 10 years and 8 years respectively, and a "partial repayment of principal" option is now available for new loans under both guarantee products. These measures aim to alleviate the repayment burden for borrowing enterprises and assist them in facing the challenges brought about by the economic transformation period.