Singapore

MAS Further Extends facility to Support Lending by Banks and Finance Companies to SMEs

The Monetary Authority of Singapore (MAS) has announced that it will further extend the MAS SGD Facility for ESG Loans.

This extension will complement the six-month extension of Enterprise Singapore’s (ESG) Temporary Bridging Loan Programme (TBLP) from 1 October 2021 to 31 March 2022, MAS said in a press release.

The Facility will continue to provide Singapore Dollar (SGD) funding at an interest rate of 0.1% per annum for a two-year tenor to eligible financial institutions (EFIs), to support loans made under the ESG Loan Schemes from 1 October 2021 to 31 March 2022.

Since its introduction in April 2020, the Facility has disbursed a total of SGD13.3 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, as they recover and adapt to the new normal.