MAS rolls out second relief package for individuals

Singapore’s central bank has unveiled a second package of relief measures to support those facing financial difficulties due to the Covid-19 pandemic, broadening a freeze on loan repayments.

The measures are aimed at easing cashflow, reducing debt burdens and ensuring access to basic banking services for impacted individuals, the Monetary Authority of Singapore (MAS) said on April 30.

The additional relief measures were rolled out as the economic outlook remains challenging and cases of the virus in Singapore climb.

“There continues to be significant uncertainty over the depth and duration of this downturn,” the MAS said.

The MAS, alongside industry associations, announced the first industry support package on March 31, which targets individuals and small businesses affected by the pandemic.

The second package allows individuals to defer repayments of student loans and car loans, as well as commercial and industrial property loans, while the first package targets mortgages and unsecured revolving credit facilities for businesses.

“MAS and the financial industry will do all we can to support individuals affected by the Covid-19 crisis,” said Ravi Menon, MAS managing director. “Together with the help measures announced on March 31, we now have a fairly comprehensive financial relief package for individuals and small businesses.”

Similar to the first relief package, the second set of support measures will be provided by banks and other financial institutions on an opt-in basis, the central bank said.

Individuals who wish to obtain the support do not need to submit documents to prove that they have been impacted by the pandemic lockdown. Deferring debt repayments will not affect their credit scores, either.

Applications for the second package will open on May 6.