In light of the ongoing impact of the COVID-19 outbreak on economic activities and the cash flow difficulties faced by some corporates, the Hong Kong Monetary Authority (HKMA), together with the Banking Sector SME Lending Coordination Mechanism (Mechanism), September 2 announced that the Pre-approved Principal Payment Holiday Scheme (Scheme) has been extended for a further six months to April 2021. All loan principal payments of eligible customers falling due between November 2020 and April 2021 will be deferred by six months except for repayments of trade loans, which will be deferred by 90 days. The HKMA has written to all participating banks requesting them to implement the new arrangement.

As customers are already familiar with the Scheme and with banks adopting work-from-home arrangements in response to the pandemic, banks will not issue individual notifications to eligible customers regarding the extension of the Scheme. Corporate customers in need of relief are requested to contact their banks.  Banks will handle each eligible customer’s case on a "pre-approved" basis. Banks may request customers (especially those who have been granted multiple extensions of payment holidays) to provide up-to-date business and financial information to better understand their needs when processing their cases.

The Scheme covers all corporate customers that have an annual sales turnover below HK$800 million and that have no seriously overdue loan payments. For enquiries about the Scheme, please contact the HKMA via the dedicated email account (ppphs@hkma.gov.hk ) or enquiry hotline (2878 1199)?