Featured Product

    MAS Extends COVID-19 Support Measures for Individuals and SMEs

    June 24, 2021

    MAS, along with the Association of Banks in Singapore (ABS) and the Finance Houses Association of Singapore (FHAS), announced the final extension of the existing industry-wide support measures for the individuals and small and medium-size enterprises (SMEs) in tier 1 and 2 sectors that continue to face financial difficulties due to the pandemic. Borrowers that are unlikely to be able to resume full loan installment repayments by the end of the relief period should approach their lenders early to work out longer-term repayment solutions. After the industry-wide support measures expire, lenders will continue to offer relief and restructuring options for borrowers facing cashflow challenges based on their specific circumstances. Borrowers that are able to resume full loan repayments should do so immediately to avoid unnecessary debt accumulation.

    Extension of Support Measures for SMEs

    The application window for the Extended Support Scheme—Customized (ESS-C) will be extended from June 30, 2021 to December 31, 2021. For ESS-C Scheme, SMEs with more than one lender may approach any of their lenders to assess if they would benefit from a multi-lender restructuring program; all SMEs with multiple creditors that do not qualify for other restructuring programs, such as the Simplified Insolvency Program and Sole Proprietors & Partnerships Scheme, are eligible. Additionally, the application window for the Extended Support Scheme—Standardized (ESS-S) will be extended from June 30, 2021 to September 30, 2021 for eligible SMEs in tier 1 and 2 sectors. SMEs in tier 1 and 2 sectors that are participating in the ESS-S may choose to defer 80% of the principal payments on the secured loans granted by banks or finance companies as well as on loans granted under Enterprise Singapore’s Enhanced Working Capital Loan Scheme and Temporary Bridging Loan Program for an extended period till September 30, 2021. SMEs in tier 1 and 2 sectors that have not participated in the ESS-S can also apply to their lenders to defer 80% of the principal payments till September 30, 2021. With respect to ESS-S, the following eligibility criteria has been stipulated:

    • Opt-in basis for borrowers that do not have loan repayments that are more than 30 days past due
    • Borrowers whose loans are already granted partial principal moratorium, should not have overdue payments on those loans. 

    Extension of Support Measures for Individuals

    For extended support measures for individuals, the eligibility is on opt-in basis for borrowers that can provide proof of income impact and have loan repayments of not more than 90 days past due. For this, the application window for the following support measures will be extended from June 30, 2021 to September 30, 2021:

    • Property Loans. Reduced installment repayment plans pegged at 60% of the borrowers’ monthly instalment until December 31, 2021; a loan tenure extension of up to 3 years can also be discussed with lenders
    • Unsecured Revolving Credit Facilities. Convert outstanding balances to term loans at a reduced interest rate
    • Debt Consolidation Plans. Extend loan tenures by up to 5 years
    • Renovation and Student Loans. Extend loan tenures by up to 3 years

    Keywords: Asia Pacific, Singapore, Banking, COVID-19, SMEs, Credit Risk, Loan Moratorium, Loan Repayment, Property Loans, Credit Facilities, MAS

    Featured Experts
    Related Articles

    EC Issues Regulation on Adjustments to K-Factor Coefficients Under IFR

    The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).

    January 20, 2022 WebPage Regulatory News

    OSFI Issues Results of Pilot on Climate Risk Scenario Analysis

    The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.

    January 20, 2022 WebPage Regulatory News

    ECB Issues Opinions on Green Bonds Standard and CRR Proposals

    The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.

    January 19, 2022 WebPage Regulatory News

    ESRB Explores Policy Response to Risks Arising from Digitalization

    The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.

    January 18, 2022 WebPage Regulatory News

    EU Authorities Address COVID-19 Reporting, MCD, and PSD2 Issues

    The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.

    January 17, 2022 WebPage Regulatory News

    FI Publishes Multiple Regulatory and Reporting Updates

    The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.

    January 17, 2022 WebPage Regulatory News

    BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance

    The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.

    January 16, 2022 WebPage Regulatory News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News

    MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.

    January 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7875