Regulatory Alerts2020-08-05
Added · Updated
90-day extension of Trade Loans under the Pre-approved Principal Payment Holiday Scheme
The Hong Kong Monetary Authority mandates all Authorized Institutions to extend the principal payment holiday for trade loans by an additional 90 days to support borrowers facing continued cash-flow pressures from the COVID-19 outbreak. This extension applies to existing scheme participants and new eligible trade loans drawn between 1 May and 31 July 2020, with customers required to proactively contact their banks to request deferment terms. The regulator clarifies that this commercial extension will not trigger loan downgrades or rescheduled classifications, provided standard guidelines are followed, while noting the scheme is scheduled to conclude in October.
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