Hong Kong banks and their regulator are considering loan relief measures for small businesses that are hit by the city's ongoing social unrest, the Hong Kong Economic Journal reported Oct. 9, citing unnamed sources.
One of the plans is to allow small businesses to delay repayment of their bank loans, and banks will not be required to classify those loans as delinquent — with therefore no need to make loan-loss provisions — immediately when they are past due, the report said.
The Hong Kong Monetary Authority and local banks that are active in lending to small businesses plan to discuss the measures this week, the report added. The discussion is part of the HKMA-led coordination mechanism aimed at providing sufficient liquidity to small businesses in difficult times.
