The principal moratorium scheme for small and medium enterprises (SMEs) will be relaunched as part of efforts to help businesses as Hong Kong undergoes economic restructuring.

Chief Executive John Lee said in his Policy Address on Wednesday that firms will be allowed to apply for principal moratorium for up to 12 months under the SME Financing Guarantee Scheme.

The maximum loan guarantee periods of the 80 percent and 90 percent guarantee products will be extended to 10 years and eight years respectively, while the partial principal repayment options will be offered to new loans under the two guarantee products.

Among the other measures to support SMEs include a HK$1 billion injection into the Dedicated Fund on Branding, Upgrading and Domestic Sales to help them upgrade their operations and develop new markets, as well as fresh efforts to further promote Hong Kong brands.