Hong Kong taxpayers face HK$28 billion Covid bad-loan burden from SMEs

Hong Kong taxpayers may have to shoulder nearly HK$28 billion (US$3.57 billion) in bad loans from a now-defunct, fully government-backed financing scheme designed to help smaller enterprises survive the Covid pandemic. Official data released to legislators showed that of the 67,189 loan applications approved under the special scheme, 13,231 had defaulted by the end of February, involving a total sum of HK$27.8 billion. This translates to a default rate of 19.3 per cent. As guarantor, the...