Zhitong Financial APP learned that on June 23, entrusted by the Hong Kong government, Hong Kong Certificate Insurance Co., Ltd. announced that the application period for the interest non-repayment arrangement under the SME financing guarantee Scheme had been extended by another three months to the end of September 2023, with the upper limit of the non-repayment period maintained at 42 months. Borrowers in need may apply for non-repayment of principal before the expiration of the period, or apply for partial repayment options later to gradually resume normal repayment. Enterprises should contact the lending institutions in due course to discuss the arrangements.
It is understood that the arrangement of interest repayment and non-repayment of principal is a special relief measure with a time limit. It was first launched in September 2019 under 80% of the credit guarantee products of the SME financing guarantee Scheme, but since the epidemic has been prolonged many times, it is also applicable to 90% of the credit guarantee products and 100% guaranteed ex-gratia loans to help SMEs cope with their cash flow in an uncertain economic environment.
At present, borrowing enterprises can apply for interest non-repayment arrangements for their term loans for a maximum of 12 months at a time. If the interest repayment period is about to expire soon, the borrowing enterprise may apply for renewal of up to 12 months as required during the relevant application period, provided that the total number of months of non-repayment of principal shall not exceed the upper limit set by the plan. The borrowing enterprise and / or the relevant loan must be free from any outstanding arrears of more than 30 days, that is, meeting the eligibility for interest repayment and non-repayment of principal. These requirements will continue to apply to the above extended application period for non-repayment of principal (i.e. until the end of September 2023).