The requirement of a guarantee from 90% of shareholders for loans under the Relief Loan Guarantee Scheme is to prevent abuse of the scheme, the Secretary for the Financial Services & the Treasury says.

Speaking on Commercial Radio's news programme this morning, Frederick Ma said the Government had consulted industry representatives and legislators before working out the loan scheme details.

Noting that the catering industry's special situation had been taken into account in designing the loan requirements, Mr Ma stressed that the Government has to be cautious when public money is involved.

The atypical pneumonia outbreak has had adverse effects on Hong Kong's economy, he noted, although it is too soon to assess the overall damage.

Much depends on how long the outbreak lasts, he added.

The Inland Revenue Department is working hard to prepare for the salaries tax rebate, he said, and details of the arrangement will be announced on May 2.