Singapore banks roll out virus relief measures for SMEs, retail customers

Singapore

AS THE Covid-19 outbreak continues to rattle the region, Singapore banks have stepped in with relief measures to help businesses and retail customers.

DBS, OCBC and Standard Chartered on Thursday rolled out their respective relief packages - a day after UOB said it had allocated S$3 billion to provide Singapore-based companies, especially small- and medium-sized enterprises (SMEs), with relief assistance.

OCBC will offer targeted support to customers across its core markets affected by the virus outbreak, it said in a statement. These markets include Singapore, Malaysia, China, Hong Kong and Macau.

The bank's measures include allowing customers to restructure their loans (including home mortgages and business loans), providing a moratorium on principal repayment for loans, extending the due date of the affected business' trade finance bills, and extending bridging loans in the form of additional working capital financing to affected businesses.

These initiatives have been put in place to ensure that businesses and individuals can manage their cash flow to overcome the market challenges, said the lender.

OCBC chief executive Samuel Tsien said the bank "will not put a cap" on the help it will extend to customers, noting that the scale of the virus outbreak is "different from that of previous challenges" due to increased connectivity in the region.

Meanwhile, DBS will support SMEs with liquidity relief packages to address their "most urgent cash flow needs" during this period, the lender said in a statement.

In particular, it will provide a six-month principal repayment moratorium for SME property loans. It will also offer an extension of import facilities of up to 60 days to act as immediate cash-flow support for businesses coping with disruptions from the Covid-19 situation.

These initiatives will be available upon application to customers with good repayment histories, it said in a statement.

Ensuring consistent cash flow for ongoing operating costs was found to be the top concern among SMEs during this period, going by a recent poll by DBS among about 100 SME clients.

On the retail side, affected customers with good repayment histories may apply for a six-month principal repayment moratorium for mortgage loans. More details will be shared on DBS/POSB's website from Feb 17.

DBS will also partner transport operator ComfortDelGro to encourage commuters to use the bank's debit or credit cards for street hail fares, which will help in contact tracing.

"We hope the liquidity measures will go some way in easing the financial pressure that some individuals and SMEs may face.

"Other initiatives are intended to help customers adjust to the little changes they may have to make in daily living," said DBS Singapore country head Shee Tse Koon.

StanChart will look into offering loan tenor extensions and principal moratoria of up to 12 months for affected clients with business banking instalment loans upon request.

Other forms of support could include bill maturity extensions of up to three months for clients with trade facilities who face delayed trade payments, waivers of business banking late fees and related charges such as restructuring costs for up to six months, and extra loans or overdrafts against their property for clients with commercial mortgages.

Dwaipayan Sadhu, StanChart head of retail banking for Singapore, said: "We understand this can be a stressful time for everyone and we want to help our clients alleviate some financial burden in the short term, if they need it during this period."

Malaysian lender CIMB, through its Singapore office, has also stepped forward to help affected companies that require longer credit terms from their suppliers to conserve cash flow.