Home loans sold to reduce deficit

The government will consider offloading more of its loans to help reduce the budget deficit, Secretary for Financial Services and the Treasury Frederick Ma Si-hang said yesterday.

Mr Ma was speaking after finalising a deal with the Hong Kong Mortgage Corporation, to which the government has sold housing loans for civil servants worth $4.8 billion.

After signing an agreement for the sale, Mr Ma said the transfer was the first step in the government's asset-sales programme to reduce the $70 billion budget deficit.

The sale involves about 11,300 loans granted to participants under the Home Financing Scheme, Home Purchase Scheme and Housing Loan Scheme.

The government plans $112 billion in asset sales in the next five years.