Regulatory Alerts2023-08-29
Added · Updated
Dedicated 100% Loan Guarantee Scheme for Battery Electric Taxis
The Hong Kong Monetary Authority issued this directive to confirm that regulatory and reporting treatments for the new 100% loan guarantee scheme for battery electric taxis will follow those established for the 2021 Personal Loan Guarantee Scheme. The scheme, administered by HKMC Insurance Limited, provides fully guaranteed loans to taxi owners for replacing internal combustion engines with electric vehicles, with the Government backing the HKMC's purchase of these loans without recourse. Consequently, the standard 85% loan-to-value cap for taxi financing does not apply, and participating authorized institutions are exempt from standard credit assessment requirements due to the transitory nature of their credit risk exposure.