26 May 2021
The 100% Personal Loan Guarantee Scheme (PLGS), which was introduced by the Financial Secretary in the 2021-22 Budget, started receiving applications from 28 April 2021. The Hong Kong Monetary Authority issued a circular on 20 April 2021 (Circular) setting out its policy intent in respect of applicable regulatory and reporting treatments for loans granted by participating authorised institutions (AIs) to eligible borrowers under the PLGS. Under the PLGS, AIs are able to rely on support from the Government in relation to qualifying loans for the purposes of risk management and their capital and exposure limits.
The Circular is accessible here: link.
For further information, please contact:
Simon Deane, Partner, Deacons
simon.deane@deacons.com
