Tuesday, 16 July 2024
MAS extends facility to support lending to SMEs
The Monetary Authority of Singapore (MAS) announced that it will further extend the MAS SGD facility for ESG loans (the facility). This extension will complement the six-month extension of Enterprise Singapore’s(ESG) Temporary Bridging Loan Programme (TBLP) from 1 April 2022 to 30 September 2022.
The facility will continue to provide Singapore dollar (SGD) funding to eligible financial institutions (EFIs) for a two-year tenor. A revised interest rate of 0.5% per annum will apply for funding provided from the May 2022 application window onwards, to better reflect interest rates in Singapore, which have risen alongside the economic recovery.
Since its introduction in April 2020, the facility has disbursed a total of SGD 14.2 billion ($3.12 billion) to EFIs in support of their lending to companies under the ESG loan schemes. Collectively, the government’s risk-sharing through the ESG loan schemes and MAS’ lower-cost funding through the facility will continue to keep borrowing costs low for local enterprises to support their cashflow needs.
Re-disseminated by The Asian Banker
