Centralised repayment system to be set up for distressed borrowers from next year

CREDIT Counselling Singapore (CCS) will offer a centralised repayment system to borrowers with debts owed to several banks from next year.

This was announced by Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam on Tuesday at the CCS's 10th anniversary luncheon. Mr Tharman is also chairman of the Monetary Authority of Singapore.

With this system, CCS will coordinate with all the banks that are owed money by a borrower, and create a centralised repayment plan for him. This will take into account the borrower's income, spending needs and loan obligations.

The Association of Banks in Singapore said on Tuesday that financial institutions will contact such customers with repayment plan details in the first quarter of 2015. It said customers are encouraged to update their income records with their respective banks.