Out-Law News 1 min. read
30 Jun 2021, 12:06 am
The Monetary Authority of Singapore (MAS) will extend the existing industry-wide loan repayment support measures for individuals and small and medium-sized enterprises (SMEs) which have been impacted by the Covid-19 pandemic.
Under the extension, individuals will be able to apply for property loans, unsecured revolving credit facilities, debt consolidation plans and renovation and student loans until 30 September, extended from the previous deadline of 30 June.
SMEs will be allowed to file their loan applications for the Extended Support Scheme -Standardized (ESS-S) until 30 September. SMEs which are participating the ESS-S may also postpone 80% of principal payments on loans secured from banks and from Enterprise Singapore until 30 September.
Qualifying SMEs should be in the Tiers 1 and 2 sectors including aviation and aerospace, tourism, hospitality, conventions and exhibitions, built environment, licensed food shops and stalls, qualifying retail outlets, arts and entertainment, land transport, and marine and offshore.
SMEs in these tiers that are not currently participating in the scheme can apply to do so from 1 July to 30 September.
According to MAS, this is expected to be the final extension to the scheme.
Mark Tan of Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, the law firm behind Out-Law, said: “The extension by the MAS of the existing industry-wide support measures for individuals and SMEs in this regard is a recognition of the fact that while economic recovery from the pandemic is underway, further financial support will still be required by certain individuals and SMEs, who continue to face cashflow pressures due to the pandemic. However, the fact that this is likely to be the final extension of the program also suggests that going forward, the MAS is likely to pivot away from such industry-wide reliefs, and transition to more specifically targeted support measures instead.”
The ESS aims to help individuals and SMEs having cashflow difficulties transition gradually to full loan repayments. In October 2020, MAS extended applications for the support measures for individuals and SMEs till 30 June.