Local firms mixed on impact of debt moratorium extension

Singapore

SMALL and medium-sized enterprises (SMEs) had mixed reactions on being given another three to six months to resume full loan repayments under a debt moratorium programme extension, with some concerned over the accumulation of interest while others welcomed the reprieve.

The Extended Support Scheme - Standardised was jointly announced on Monday by the Monetary Authority of Singapore, the Association of Banks in Singapore and the Finance Houses Association of Singapore. It allows SMEs in sectors that have been hit harder by the pandemic, such as aviation and tourism, to defer 80 per cent of principal payments on their secured loans granted by banks or finance companies until June 30, 2021, from Dec 31, 2020 previously.