The number of personal bankruptcy petitions declined by 10, to 847, in April - a sign, one economist said, that brighter employment prospects and better job security are helping people's finances, despite the spectre of rising interest rates.
Last month's personal bankruptcy filings represent a drop of just over 1.1 per cent from March but a decline of about 13.8 per cent year on year. In April 2004, some 983 petitions were filed, according to the Official Receiver's Office.
'I think the improvement is largely a reflection of the stronger job market as people become more confident in their financial situation,' Hong Kong General Chamber of Commerce chief economist David O'Rear said.
Rises in interest rates, which this week's tweaking by the Hong Kong Monetary Authority of the currency peg will spur, have brought higher mortgage repayments. But Mr O'Rear said this may not necessarily lead to a worsening of the bankruptcy situation.
'With mortgage payments, there is a pretty low ratio in terms of defaults. I think people will do whatever it takes to make the payments. Defaulting on them would make life very difficult,' he said.
During the first four months of this year, personal bankruptcy filings totalled 3,244, a 27.7 per cent reduction from the 4,490 petitions for the same period last year.
