Yesterday, Singapore announced a “resilience package” totaling SGD 20.5 billion (approximately $13.6 billion) that “aims to save jobs to the maximum extent possible and help viable companies stay afloat.” The resilience package, which has five components, aims to stimulate bank lending by extending “SGD 5.8 billion of government capital” by “enhancing existing schemes and [introducing] a new Special Risk-Sharing Initiative (SRI).”
The SRI has two components:
- A new Bridging Loan Programme (BLP) under which the Government’s risk share on loans of up to $5 million is raised to 80%; and
- New risk-sharing schemes for trade financing, including 75% government risk-sharing for trade loans.
The Singapore government estimates “these measures could help generate SGD 11 billion of loans.” More details of the Singapore government’s bank lending initiatives are available here.