Singapore’s Lau Pa Sat hawker centre is empty of customers during the country’s “circuit breaker” lockdown. Many small businesses have received government-backed loans, leading to concerns that they may default as the Covid-19 pandemic drags on. Photo: Bloomberg
Will Singapore banks regret easy loans for coronavirus-hit businesses?
- Struggling businesses have taken out 2,500 loans since March and while there is a risk of default, analysts say the loans will prevent the larger calamity of businesses collapsing
- Also, banks are well-capitalised and regulated enough so bad loans won’t threaten their viability
Singapore’s Lau Pa Sat hawker centre is empty of customers during the country’s “circuit breaker” lockdown. Many small businesses have received government-backed loans, leading to concerns that they may default as the Covid-19 pandemic drags on. Photo: Bloomberg
