APREA lauds the Hong Kong Monetary Authority’s recent announcement of a prudential measure to raise the applicable loan-to-value ratio caps (LTV ratio) for mortgage loans on non-residential property from 40% to 50% for general cases, which took effect on August 20, 2020.
The LTV ratio relaxation could provide greater cash flow flexibility and allow commercial real estate companies in Hong Kong to efficiently manage their debt and capital structures in light of the challenging environment arising from the COVID- 19 pandemic.
Please view the details of the announcement HERE.
