HKMA Cross-Boundary Transport Loan

On Apr. 28, HKMA launched scheme for cross-border transport trade.

  • HKMA said HKMC Insurance Limited announced the launch of a dedicated 100% loan guarantee scheme for cross-boundary passenger transport trade and travel sector.
  • Follows HKMA Apr. 2021 re policy intent for personal loan guarantee, see #103317.
  • Schemes
  • 10 lending institutions have joined the scheme, including Bank of Communications, Bank of China, China CITIC Bank International Limited, Hang Seng Bank and HSBC.
  • Eligible operators, registered vehicle owners or ferry owners of cross-boundary passenger transport can apply loans for vehicle or ferry repair and maintenance.
  • Eligible licensed travel agents, local tour bus operators/registered owners can apply for loan for resolving short-term funding difficulties and hiring staff as soon as practicable.
  • Term loan for maximum term of 10 years; interest rate is prime rate minus 2.5% p.a..
  • Effectiveness
  • Application period of the schemes is 6 months from the launch date on Apr. 29, 2023.
  • Oct. 2023 Deadline Extensions
  • On Oct. 27, 2023, HKMA said HKMC extended application period for 2 loan guarantee schemes, the application period has been extended by six months to Apr. 28, 2024.

Regulators HKMA
Entity Types Bank
Reference PR 10/27/2023; PR, 4/28/2023; Cir B1/15C, B9/25/2C, B9/25/4C, B9/75C, B9/188C, 4/25/2023;
Functions Financial; Operations; Risk; Treasury
Countries Hong Kong; Cross-Border
Products Banking; Loan
Regions AP
Rule Type Final
Rule Date 4/28/2023
Effective Date 4/28/2024
Rule Id 171161
Linked to Rule :103317
Reg. Last Update 10/27/2023
Report Section International

Last substantive update on 10/30/2023