Li Jiachao: Addressing the challenges faced by small and medium-sized enterprises during the economic transformation period will further promote interest repayment without principal repayment.

On October 16, Jinshi Data News, Hong Kong Chief Executive Li Jiachao said that in response to the challenges faced by small and medium-sized enterprises during the economic transformation period, the government will launch the following support measures: pushing for interest-only repayment, allowing borrowing enterprises under the small and medium-sized enterprise financing guarantee program, including loans that have been approved under the existing 80%, 90%, and 100% special guarantee products, and new loan applications under the 80% and 90% credit guarantee products, to repay interest only for up to twelve months without repaying the principal. The longest loan guarantee period for the 80% and 90% credit guarantee products will be extended to ten years and eight years respectively, and partial principal repayment options will be provided for new loans under the two guarantee products. The Hong Kong Monetary Authority is also actively considering providing flexibility in bank capital requirements to promote banks to provide financing for small and medium-sized enterprises.