The Hong Kong government proposes raising its bond programmes' borrowing ceiling from HK$700 billion to HK$900 billion (US$115 billion) to fund infrastructure development. Officials say the new limit will suffice for projects over the next three years, while leaving room for future increases if needed.
The Hong Kong government proposes increasing the borrowing cap for its bond programmes from HK$700 billion to HK$900 billion (US$115 billion) to finance infrastructure projects. Andrew Lai Chi-wah, permanent secretary for financial services and the treasury, made the remarks on Thursday at a Legislative Council subcommittee meeting reviewing the plan.
Lawmaker Robert Lee Wai-wang raised concerns about whether the government would further raise the ceiling. Lai said the new limit would be adequate for short- to medium-term initiatives, stating: “Over the next two to three years, unless there are significant and unforeseen events, [the borrowing cap] is sufficient to meet our needs.”
However, he did not rule out additional increases to accommodate emerging projects in the Northern Metropolis and to expedite its development. Lai noted that even after the increase, Hong Kong’s debt-to-gross domestic product ratio would stand at 19.9 per cent, which he described as healthy and lower than that of other developed economies.
