In this file photo dated April 11, 2023, a woman walks past the entrance to the Hong Kong Monetary Authority in Central, Hong Kong. (CALVIN NG / CHINA DAILY)

HONG KONG - Early repayments will no longer be required from borrowers who make timely mortgage payments, announced the Hong Kong Monetary Authority (HKMA) Thursday while unveiling a raft of measures to give a leg-up to small and medium-sized enterprises (SMEs). 

The nine measures unveiled are aimed at helping SMEs obtain financing from banks and to support their continuous development. 

Early repayments will no longer be required from borrowers who make timely mortgage payments

Key initiatives include allowing a transition period of at least six months for credit limit adjustments and speeding up the handling of applications for the 80 percent and 90 percent Guarantee Products. 

Also, principles under the Pre-approved Principal Payment Holiday Scheme to support customers facing difficulties will be applied, including considering extending the duration of the partial principal repayment or even offering principal moratorium. Credit products that better serve SMEs’ needs and other support services will be offered and the government will "actively consider" lowering interest charges and fees.   

This is "to assist SMEs in navigating a complex and ever-changing operating environment and to increase their bargaining power relative to banks," the HKMA said in a statement.

According to media reports, leading local banks HSBC, Standard Chartered and Bank of China (Hong Kong) welcomed the announcement, saying they will beed up support for SMEs. 

The announcement was made together with the Banking Sector SME Lending Coordination Mechanism (Mechanism) set up by the HKMA in Oct 2019. 

In 2023, the 11 participating banks in the Mechanism together approved over 110,000 loans to SMEs, involving an aggregate facility limit of over HK$450 billion.