Legislative Council Panel on Trade and Industry
SPECIAL FINANCE SCHEME FOR
SMALL AND MEDIUM ENTERPRISES
This paper reports on progress in the operation of the Special Finance Scheme for Small and Medium Enterprises (SMEs) and the result of the review conducted for the Scheme.
2. As of 1 April 1999, a total of 1,316 applications under the Scheme have been referred to the Government by participating lending institutions. With the exception of 21 applications which have been withdrawn by the applicants and one application which has been rejected, all applications have been approved. The cumulative sums of guarantees committed and loans facilitated amount to about HK$769 million and HK$1,570 million respectively.
3. The detailed statistics showing the various aspects of the performance of the Scheme up to 1 April 1999 are set out at the Annex.
4. In December 1998, the Government embarked on a comprehensive review of the Scheme to assess the feedback on and to examine ways to improve the operation of the Scheme. We have recently completed the review and a Legislative Council Brief was issued on 31 March 1999, setting out the major findings and recommendations of the review.
5. We intend to seek the approval of the Finance Committee for implementing the recommendations of the review on 23 April 1999.
Trade and Industry Bureau