Monetary Authority of Singapore is considering reducing support measures

The Singapore government affirmed that the support measures cannot be maintained indefinitely and warned that it is necessary to evaluate new alternatives that allow companies and citizens to stay afloat.

Monetary Authority of Singapore (MAS) and financial institutions are evaluating a plan to reduce support measures for companies and citizens.

Ravi Menon, MAS’ director announced that they are working with banks on how to separate companies and citizens from the support measures implemented by the government.

Menon pointed out that since the beginning of the pandemic the Central Bank has worked with the financial industry in the implementation of support measures, that they have already done their part.

“I don’t think we can continue these supports indefinitely, because the longer you continue them, the more risk some of these borrowers are in terms of repayment,” he added.

Other alternatives need to be considered!

He emphasized that, it is time to consider other alternatives that allow companies and citizens to stay afloat in the midst of the crisis generated by the Covid-19.

The MAS’ director stated that a balance needs to be achieve to ensure that most debtors can repay their loans to financial institutions.

Since March 31, the Monetary Authority of Singapore has been working on the implementation of a series of support measures for companies and citizens.

Scope of support measures

According to Menon, the payments of 34 thousand mortgage loans have been deferred until December 31.

Principal and interest payments on more than 2,100 renovation and education loans have also been deferred.

More than 6,200 applications to convert outstanding credit cards and unsecured debt into term loans at lower interest rates were approved

Nearly 25,000 life and health insurance policies have deferred their premiums while maintaining coverage.

About 600 individual general insurance policies, such as for vehicles policies, are under flexible installment payment plans.

More than 240 PYME applications for flexible payment plans of general insurance were also approved. The postponement of guaranteed loan payments from more than 5,300 PYME was approved.