The Monetary Authority of Singapore (MAS) is said to be considering a tiered approach that gives industries that are most affected by the pandemic an extension of up to six months.
The regulator and central bank is looking at ways to give borrowers, which include SMEs and individuals, extra relief in the form of an extension to its debt moratorium program beyond the end of the year, «Bloomberg» reported on Monday, citing people with knowledge of the matter.
Details on the program and those who qualify are still being finalized, the report said.
The Singapore government has pledged more than $100 billion in Covid-19 related relief to mitigate the extent of the economic downturn resulting from the virus outbreak.
Debt Moratorium
The debt moratorium program, which was introduced in March, allowed SMEs to defer principal payments on their secured term loans up to 31 December 2020, subject to banks’ and finance companies’ assessment of the quality of the SMEs’ security.
Individuals with residential property loans can also apply to their respective bank or finance company to defer either the principal payment or both principal and interest payments, while those who have a suffered a loss of income and have unsecured credit facilities from banks or other credit card issuers can apply to convert their outstanding balances to term loans at a reduced rate of interest.
Positive Outlook for Banks
Ratings issuer Fitch on Monday affirmed the AA- ratings on DBS, OCBC and UOB and removed the Rating Watch Negative on the Long-Term Issuer Default Ratings and Viability Ratings.
«There remain downside risks to business conditions and the banks' financial profiles domestically and overseas, but the materialization of stressed conditions has become less immediate,» Fitch said in a statement, noting that it expects Singapore's economy to recover gradually in the second half of the year as economic activity resumes.
