The $11.8 billion relief package is a short-term measure to relieve the unemployment situation and revive consumer confidence, Secretary for Economic Development & Labour Stephen Ip said today.

When atypical pneumonia is under control, the Government will promote inward investment and commercial activities in Hong Kong.

Speaking on a radio programme this morning, Mr Ip said the loan-guarantee scheme is targeted at four seriously affected industries, to avoid closures due to cash-flow problems.

He said low-interest bank loans will be open for application from May 2. Repayments will start six months after draw-down and should be made regularly within two years.

To avoid abuse of the scheme, the Government is discussing with banks the idea of setting up a centralised database to monitor multi-borrowings from the same client, said Secretary for Financial Services & the Treasury Frederick Ma.

Moreover, the borrower has to show a healthy banking record within the last six months, Mr Ma added.

Mr Ip said he understood the hardship facing some members of the transportation industry, such as taxi drivers. He believes concerned authorities will respond to their calls.

He also hoped landlords would reduce rents for commercial complexes to help business executives ride out these trying times.

Mr Ip noted the recent 7.5% unemployment rate had not reflected the impact of atypical pneumonia on our economy and he expected a further rise in the upcoming census.

However, the 20,000 temporary jobs to be created through the relief package should partly alleviate the situation, he added.