Hong Kong Commerce and Economic Bureau: Non-performing loan ratio lower than expected for special loans, government to adjust related budget in a timely manner

According to the Zhitong Finance and Economics APP, on May 21st, during a meeting of the Hong Kong Legislative Council, Member Ho King-hong raised questions about the government's "100% Guaranteed Preferential Loan" under the "SME Financing Guarantee Scheme". Hong Kong Secretary for Commerce and Economic Development Edward Yau responded in writing. He stated that as of the end of April 2025, the cumulative default rates for the schemes with 80%, 90%, and 100% special guarantees were approximately 5.2%, 4.2%, and 15.6%, respectively, lower than the assumed overall default rates (12%, 16%, and 25% respectively). The Hong Kong Monetary Authority is not involved in the implementation of the scheme. The government's revised budget for the 2024-2025 fiscal year is HKD 12.5 billion, which will be used to cover management fees, administrative costs, actual expenses, and default payments, and will be adjusted as necessary.