BREAKING. MAS ASKING BANKS TO EXTEND DEBT RELIEF INTO 2021

[kevphua]

https://www.bloomberg.com/news/articles/2020-09-28/singapore-regulator-banks-in-talks-to-extend-debt-relief-scheme

WHOLE COUNTRY HUAT AH

 

[koizumi888]

 

[saycheese]

Huat ah biz owners!!!

 

[Darwinson]

That’s mean can buy condo and don’t pay installment ?

So the interest will accumulate or freeze ?

 

[matrix05]

Heng is confirmed the next PM.

 

[tokiya]

https://www.bloomberg.com/news/articles/2020-09-28/singapore-regulator-banks-in-talks-to-extend-debt-relief-scheme

WHOLE COUNTRY HUAT AH

Bloomberg) -- Singapore’s central bank is in talks with lenders about extending the nation’s debt moratorium program beyond Dec. 31 to provide extra relief for borrowers hit by the fallout from the coronavirus pandemic, according to people with knowledge of the matter.

One of the key measures being discussed by the Monetary Authority of Singapore and local banks is the possibility of lengthening the debt relief program, with industries that have been impacted most by the crisis potentially having aid extended by as many as six months, the people said, asking not to be identified because the talks are confidential.

A tiered approach is being considered, so relief is targeted to those needing the most help, one of the people said. Details of the plan and what types of borrowers will be covered under an extension are still being finalized, they said.

Under the current measures announced in March, small and medium-sized firms can opt to postpone principal payments on their secured term loans until the end of the year. Consumers can defer both principal and interest payments on residential mortgages. Individuals suffering a loss of income can ask for a lower interest rate on unsecured credit.

An extension to the debt moratorium would help mitigate the so-called “cliff effect” on consumers and businesses once relief measures end. Authorities are using both fiscal and monetary tools to provide support against what may be a record recession that came with the pandemic. The government introduced additional support measures of S$8 billion ($5.8 billion) last month to cushion the blow from the virus, bringing Singapore’s total pledged pandemic aid to more than S$100 billion.

Easing Back

MAS Managing Director Ravi Menon in July said the regulator was talking to banks and finance companies about how to ease borrowers into gradually resuming repayments once the debt relief measures expire.

“We want to avoid ‘cliff effects’ of a sudden withdrawal of these reliefs,” Menon told reporters during the publication of the MAS annual report. The central bank has eased monetary policy to help stabilize the economy, and has ensured ample liquidity at financial institutions. It also asked Singaporean banks to prioritize lending by capping their dividend payouts.

While Singapore’s rate of coronavirus infection is falling and authorities are trying to gradually reopen the economy, many restrictions on businesses and travel remain in place.

Like their global competitors, Singapore’s largest lenders DBS Group Holdings Ltd., Oversea-Chinese Banking Corp. and United Overseas Bank Ltd. are bracing for a wave of soured debts. Collectively, they’ve set aside about S$4 billion in provisions for both general and problem loans in the first half of the year, according to data tracked by Bloomberg Intelligence analyst Rena Kwok.

As of June 30, debts under relief programs accounted for about 5% of DBS’s total loan book, 10% of OCBC’s, and 16% of UOB’s, according to their second-quarter results.

 

[RhinoNeo]

I would think this is like kicking the bucket further down the road.

There is no free lunch. Be ware of the additional cost involves

 

[nasfieldjohn]

bankers uplorries soon?

 

[theMKR]

song la. Buying condo now. Buy now, pay nrxt year

 

[yamakazi51]

I don't get what are the message that they are trying to send? It is ok to be over leveraged as relief will always come?

It will just prolong the suffering and create bigger bubble

 

[Crouching Dragon 諸葛亮]

barrowing more money nowwwwwww

 

[white_prince]

Can dont pay tax or CPF

 

[Hysteri]

Huat ah! More changing of bmw mercs and sports cars

 

[orhneeorh]

drawing cash from credit cards nao !!

 

[orhneeorh]

CCS sure even busier next year

 

[satayxp]

is a sound move by mas
this is not ordinary times, makes sense to implement debt relief

 

[Weaboo]

hanzawa will say

WE WILL REJECT YOUR EXTENSION OF DEBT RELIEF!!!!!!

 

[meridian]

Huats ah buy more condo naos

 

[kcarrey]

PAP ruined the economy!!!!


they keep praising themselves for doing a bad job!!!

 

[gamerx]

I don't get what are the message that they are trying to send? It is ok to be over leveraged as relief will always come?

It will just prolong the suffering and create bigger bubble

It's not about sending a message lah. The situation is that this covid issue and/or its implication on our economy is expected to last longer than what current measures are designed for.

If 1 in a 100 people can't service their debt, then they are in trouble. But if the ratio is 10-20 in a 100, then the whole country is in trouble.