The Association of Banks Singapore (ABS) says banks will work closely with their affected customers to explore funding and refinancing solutions to help ease their near-term financial strain.

The statement, dated Nov 3, came after the Ministry of Law introduced a framework to enable eligible businesses that have been severely impacted by Covid-19 to renegotiate or to terminate certain contracts.

Parties whose contracts have been affected could face consequent constraints in their operating income and cash flows.

ABS adds that banks would continue to consider credit accommodations, including loan covenant revisions and waivers where relevant, and will take into account the current circumstances of customers in their deliberation.

SMEs affected by the framework can consider tapping on the “Extended Support Scheme – Standardised”, which allows such businesses to temporarily defer 80% of principal repayments on their secured loans, hire purchase agreements, as well as loans granted under Enterprise Singapore’s (ESG) schemes.

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