The Hong Kong Monetary Authority - Pre-approved Principal Payment Holiday Scheme

The Hong Kong Monetary Authority (“HKMA”), together with the Banking Sector SME Lending Coordination Mechanism has launched a Pre-approved Principal Payment Holiday Scheme (the “Scheme”) for eligible corporate customers.  The launch date of the Scheme is 1 May 2020 (the “Launch Date”), as per the HKMA press release dated 17 April 2020.  The key features of the Scheme are as follows:

 

  • Corporate borrowers that have an annual sales turnover of HK$800 million or less based on their latest financials, that have no outstanding loan payments overdue for more than 30 days, and are not in the process of ceasing operations or declaring bankruptcy or liquidation, are eligible for the Scheme.
  • All principal payments of bilateral loans falling due within 6 months from the Launch Date for eligible borrowers will be pre-approved for deferment. Principal payments of bilateral loans (including revolving facilities) will generally be deferred by 6 months, whereas trade facilities (except for facilities which are self-liquidating in nature) will be deferred by 3 months.
  • The Scheme does not cover syndicated loans or loans used for financing purchases of shares or other financial assets.

 

On 05 August 2020, the HKMA together with the Banking Sector SME Lending Coordination Mechanism has announced an extension of the 90-day repayment deferment for trade facilities under the Scheme. This deferment will cover,

  • Trade loans both currently subject to the Scheme as well as those drawn between 1 May 2020 to 31 July 2020 with no outstanding payments overdue for more than 30 days as on 1 August 2020;
  • And self-liquidating facilities. For such facilities, the loan will be settled when the underlying payment has been received by the customer.

 

On 02 September 2020, the HKMA together with the Banking Sector SME Lending Coordination Mechanism has announced that the Scheme has been further extended for another six months till April 2021. All loan principal payments of eligible customers falling due between November 2020 and April 2021 will be deferred by six months except for repayments of trade loans, which will be deferred by 90 days.  The deferment applies whether or not a loan has been on a principal payment holiday.

 

29 January 2021, the HKMA together with the Banking Sector SME Lending Coordination Mechanism announced a 90-day repayment deferment for trade facilities under the Scheme. The repayments of trade facilities falling due between 1 February and 30 April 2021 as well as those drawn down from November 2020 to end-January 2021 will be deferred by another 90 days.

 

On 04 March 2021, the HKMA together with the Banking Sector SME Lending Coordination Mechanism announced that all principal payments of loans falling due between 01 May and 31 October 2021 by eligible corporate customers will be deferred by another six months except for repayments of trade loans, which will be deferred by 90 days.

 

All other terms of the Scheme as stated in the HKMA’s circular dated 17 April 2020, 05 August 2020, 02 September 2020 and 29 January 2021 would continue to apply.

 

For questions regarding the scheme, please contact us at:
Email: hkcorporatecare@icicibank.com (Please mention subject as “Pre-approved Principal Payment Holiday Scheme – Name of the Company”)
Phone: +852- 22342541/44/84 (service hour: Mon – Fri 9am – 6pm)