United Overseas Bank announced on Wednesday that it has allocated S$3 billion to provide companies in Singapore with relief assistance to tide over the negative impact of the Covid-19 outbreak on their business.
Mirroring moves by major banks in Hong Kong and Mainland China, the Singapore-based lender has set aside the sum to help its corporate clients, especially small and medium-sized enterprises (SMEs), in addressing their near-term liquidity needs as they face the economic fallout from the virus.
«For most companies, especially the SMEs, cash flow and financing are key to them sustaining their business. As their long-term banking partner, we believe our added support can help alleviate the business disruption and pressure from the ripple effect of the epidemic,» said Wee Ee Cheong, deputy chairman and CEO, United Overseas Bank (UOB) in a media statement.
Flexibility Provided
The bank’s relief measures aim to enable those affected companies, who have good track records and who have been servicing their repayments promptly, to have more flexibility in their cash flow management. These measures include:
- allowing affected businesses to rework their principal repayments and to service only their loan interest for up to one year;
- extending up to one-year working capital financing of up to S$5 million; and
- offering financing liquidity against mortgage security
Black-Out Period
The bank did not comment on when the cost of relief measures will hit its books, as it is currently in the black-out period before releasing its FY19 results on February 21.
For its retail customers who are affected by the current circumstances, UOB said it will assess on a case-by-case basis how it can help them.
