HSBC earmarks $3.9b in liquidity relief for businesses

It is easing borrowing terms to aid companies affected by the coronavirus outbreak.

HSBC is providing more than $3.9b (HK$30b) in liquidity relief for its business customers in Hong Kong, joining other lenders in easing borrowing terms to aid local companies battered by the coronavirus outbreak, reports Bloomberg.

Measures include a principal repayment moratorium for borrowers with commercial loans secured by property, as well as those with taxi and public minibus loans. Trade finance customers can also apply for access to an overdraft of as much as $1.29m (HK$10m) for six months to help with daily operational needs, such as employee payrolls and rent.

Banks across the city are considering loan relief to help struggling customers and businesses as the outbreak crimps spending and travel. BOC Hong Kong and Bank of East Asia announced similar measures last week, whilst the city’s finance chief has urged landlords to provide rental relief to struggling firms.

HSBC also gave employees on the “front-line” and in “critical operations” five extra days of leave until next year, a spokeswoman said last week.

Here’s more from Bloomberg.