Hong Kong SMEs Demand Lower Bank Interest Rates

SME Survival Alliance, an association of small and medium enterprises (SMEs) in Hong Kong, has demanded that the country’s banks must lower their interest rates to help small businesses. Following the financial meltdown, small companies in Hong Kong are facing tough times. Slashing of key interest rates is expected to offer them a much-needed boost to tide over the financial crisis, feels the association.

Officials of the SME Survival Alliance have sought relief measures from banks in the form of reduced interest rates to help small businesses cope with the credit crunch. They are hopeful that the banks would cut interest rates from prime rate plus four to prime rate plus two. Reduction in key rates would help small companies to implement their business expansion strategies and focus on developmental plans.

Association members also hope that the Trade and Industry Department would take measures to speed up loan approval procedures under the Special Loan Guarantee Scheme being availed by small businesses. According to an alliance operator, since the initiation of HK$100 billion programme, the department has sanctioned loans to over 10 of the alliance's members.

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