Singapore to calibrate debt moratoriums soon

SINGAPORE will soon calibrate its debt moratorium schemes, with the regulator looking to extend its programmes to certain borrowers beyond Dec 31, while also ensuring that those with the ability to pay should begin repayment even before the moratoriums expire, The Business Times understands.

This comes as the regulator had earlier warned of the "cliff effect" on the financial system if the repayment ability of borrowers who chose to take a debt holiday amid the global pandemic, is only assessed at the point when the moratorium schemes officially end.

Qualifying SMEs seeking to pause on their principal payments on their secured term loans have been able to do so, and have a deferment last till Dec 31, 2020. Property owners with a mortgage have also been able to ask to defer both principal and interest payments, or just the principal payments, up till Dec 31 this year.