Featured Product

    MAS Announces Extension of Support Measures Amid COVID-19 Pandemic

    October 05, 2020

    MAS, together with the Association of Banks in Singapore (ABS) and Finance Houses Association of Singapore (FHAS), announced an extension of support measures to help individuals and small and medium-size enterprises (SMEs) facing cashflow difficulties to transition gradually to full loan repayments. These extended measures will progressively expire over 2021. For individuals, these support measures include extended assistance for personal unsecured credit and debt consolidation plan. For SMEs, these support measures include partial deferment of principal payments on secured SME loans and loans under enterprise Singapore, in addition to the customized restructuring programs.

    Since April 2020, banks and finance companies have been providing relief measures for individuals and SMEs amid the COVID-19 pandemic and these measures are set to expire by December 31, 2020. As economic activities continue to open up, borrowers that are able to resume paying their loan instalments in full should start doing so from January 01, 2021. However, for individuals and businesses that will continue to experience cash-flow pressures into early 2021, these extended support measures will allow more time to resume repayments. The support measures will also be available to borrowers previously not under any payment deferral, but who are now facing cash-flow challenges. The extended support measures include the following:

    • Extended assistance for personal unsecured credit and debt consolidation plan—Certain individuals, such as those who face difficulty repaying their unsecured revolving credit facilities, those who can provide proof of income impact of at least 25%, and those with repayments that are between 30 and 90 days past due, may apply to their lender till June 30, 2021 to convert their outstanding balances to term loans at a reduced interest rate. Individuals on Debt Consolidation Plans, who can provide proof of income impact and with repayments that are between 30 and 90 days past due, may apply to their lender till June 30, 2021 to extend the loan tenure of their Debt Consolidation Plans for up to five years. 
    • Partial deferment of principal payments on secured SME loans and loans under Enterprise Singapore—SMEs in need of further relief should first consider the Extended Support Scheme—Standardized (ESS-S). Under this scheme, SMEs in Tier 1 and Tier 2 sectors may opt to defer 80% of principal payments on their secured loans granted by banks or finance companies as well as loans granted under Enterprise Singapore’s (ESG) Enhanced Working Capital Loan Scheme and Temporary Bridging Loan Program till June 30, 2021. SMEs in other sectors may opt to do the same up to March 31, 2021. This relief will be available to all SMEs that are not more than 30 days past due on all their loan payments. SMEs whose loans have been granted principal moratorium should also not have overdue interest payments for these loans. Borrowers can apply for ESS-S from November 02, 2020 onward.
    • Customized restructuring programs—Banks and finance companies are also developing an Extended Support Scheme—Customized (ESS-C) to facilitate the restructuring of a borrower’s loans across multiple financial institutions. The ESS-C complements other restructuring assistance schemes under the proposed Simplified Insolvency Program (SIP) for micro and small companies and scheme for sole proprietors and partnerships (SPP scheme). The ESS-C will be available for SMEs with more than one lender for whom the SPP scheme and SIP may not be suitable. More details on the ESS-C will be provided in the coming weeks. Borrowers can apply for ESS-C from November 02, 2020 onward.

    Keywords: Asia Pacific, Singapore, Banking, Credit Risk, COVID-19, Payment Deferrals, Loan Repayment, Basel, MAS

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News
    News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News
    News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News
    News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267