REVISED AGENDA FOR FINANCE COMMITTEE MEETING
TO BE HELD ON TUESDAY, 28 OCTOBER 2008, AT 4:30 P.M.

Declaration of interest : Please refer to Rule 83(A) and Rule 84 of the Rules of Procedure of the Legislative Council for rules regarding pecuniary interest to be disclosed.

Item No.Subject
1.FCR(2008-09)42HEAD 181 - TRADE AND INDUSTRY DEPARTMENT
Subhead 700 General non-recurrent
Item 520 SME Loan Guarantee Scheme
Item 524 SME Export Marketing and Development Funds

(This item invites Members to approve the following changes to Head 181 Trade and Industry Department Subhead 700 General non-recurrent -

Item 520 SME Loan Guarantee Scheme -

(a)remove the sub-ceilings for the Business Installations and Equipment Loans and Working Capital Loans, while maintaining the overall maximum amount of guarantee for each small and medium enterprise (SME) at $6 million; or 50% of the approved loan, whichever is the less;

(b)increase the indicative ceiling of guarantee exposure for each participating lending institution from $1.25 billion to $1.5 billion;

(c)allow each SME to recycle the guarantee once after it has fully paid up the loan backed up by the guarantee;

Item 524 SME Export Marketing and Development Funds -

(d)increase the maximum amount of grant per SME from $100,000 to $150,000 under SME Export Marketing Fund (EMF), and the sub-ceiling for each successful application from $30,000 to $50,000; or 50% of the approved expenditure, whichever is the less; and

(e)extend the scope of reimbursable items under EMF.)

(In attendance : The Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism)/the Director-General of Trade and Industry/the Assistant Director-General of Trade and Industry (Industries Support)/the Executive Director (Banking Policy) of Hong Kong Monetary Authority)

(Circulated to Commerce and Industry Panel on 21 October 2008 and to be discussed by Commerce and Industry Panel on 27 October 2008)

------------------------------