Mr Ravi Menon, Managing Director of MAS, spoke on the opportunity to build a more resilient and sustainable world emerging from COVID-19, and provided an update on Singapore’s Green Finance Action Plan to facilitate Asia’s transition to a sustainable future.
MAS extends facility to support lending by banks and finance companies to SMEs
Singapore, 12 October 2020... The Monetary Authority of Singapore (MAS) announced today that it will extend the
2 The Facility will provide Singapore Dollar (SGD) funding at an interest rate of 0.1% per annum for a two-year tenor to eligible financial institutions
3 Since its introduction in April 2020, the Facility has disbursed a total of S$5.7 billion to eligible financial institutions in support of their lending to companies under the ESG Loan Schemes. Taken together, the Government’s risk sharing through the ESG Loan Schemes and MAS’ lower-cost funding through the Facility have helped to lower borrowing costs for local enterprises to a range of 1.5% to 3.0% per annum under the TBLP, from 6% or more for other unsecured working capital loans.
4 Ms Jacqueline Loh, MAS’ Deputy Managing Director (Markets and Development), said, “The MAS SGD Facility for ESG Loans complements MAS’ other liquidity facilities – the MAS SGD Term Facility and MAS USD Facility – which provide banks with greater certainty of access to central bank liquidity. MAS’ suite of liquidity facilities will continue to support banks and finance companies in providing credit to individuals and businesses in Singapore and the region, amid the economic headwinds from the COVID-19 pandemic.”