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Banks tighten credit to bunker industry amid fraud and other risks

In the wake of Coastal Oil's US$354m debt, foreign and local banks step up vigilance; analysts warn credit costs could rise by 1 to 6 basis points

Angela Tan

Published Mon, Jan 21, 2019 · 09:50 PM

Singapore

THE credit-starved bunker sector is feeling the screws tightening further as banks cut their exposure to what they fear is a high risk industry, including instances of fraud.

The Business Times understands that foreign and local banks such as DBS, OCBC and UOB are still offering credit to bunker firms, but have taken an even more vigilant stance in view of what happened at Coastal Oil Singapore.

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