SINGAPORE - The Monetary Authority of Singapore will work with banks on how to wean companies and individuals off the relief measures rolled out during the coronavirus pandemic, said its managing director Ravi Menon.
"We will not have a cliff effect - which means it's not as if will all be withdrawn Dec 31," he said, referring to the deadline for most of the relief measures. The MAS chief explained that banks' ability to lend money to other companies will in turn be affected when lenders have to take large losses, though they may start off from a strong capital position.
"When we implemented these measures, we didn't have to do any study. We just did it because we knew going to be necessary." Small and medium-sized enterprises that continue to pay interest and are in good standing with their banks and finance companies can choose to defer principal payments on their secured term loans up to Dec 31.
He noted that banks have deferred payments on principal or interest or both on about 34,000 mortgage loans until Dec 31.
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