LegCo approved a resolution to increase the maximum indemnity percentage of ECIC from 90% to 95% under the Hong Kong Export Credit Insurance Corporation Ordinance (section 13(2) of Cap. 1115).
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On March 26, 2025, LegCo approved a resolution to increase the maximum indemnity percentage of the Hong Kong Export Credit Insurance Corporation ("ECIC") from 90% to 95% under the Hong Kong Export Credit Insurance Corporation Ordinance (section 13(2) of Cap. 1115).
The resolution aims to enhance ECIC's insurance protection for exporters, with a particular focus on small and medium-sized enterprises ("SMEs"). It seeks to address the challenges faced by SMEs in obtaining credit insurance or affording high premiums, thereby offering stronger support to Hong Kong's export sector. The initiative was announced in the Chief Executive's 2024 Policy Address with the aim of bolstering Hong Kong's trade position amidst global economic challenges.
Approximately 1,200 SMEs currently benefiting from the Small Business Policy ("SBP") will see an increase in their indemnity percentage from 90% to 95%. ECIC has adequate reserves to support this change, and the estimated increase in claims is around $13 million per financial year, representing 0.45% of ECIC’s total reserves. The resolution will be moved at the Legislative Council meeting on 26 March 2025, with the new maximum indemnity percentage subject to LegCo approval and gazetted on 28 March 2025.
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