MAS Welcomes Measures by Financial Institutions to Support Customers Facing the Impact of COVID-19
The Monetary Authority of Singapore (MAS) has announced that it welcomes the recent announcements from banks and insurers in Singapore to support their customers who may be facing financial difficulties brought about by the impact of the ongoing 2019 novel coronavirus (COVID-19) outbreak.
The support announced by banks thus far include moratoriums on repayments for affected corporate and individual customers, extension of payment terms for trade finance facilities, and additional financing for working capital. The measures are in line with guidelines on corporate debt restructuring by the Association of Banks in Singapore (ABS).
Insurers in Singapore have clarified that Integrated Shield Plans (IP), IP riders and most other personal and group health insurance policies will cover hospitalisation expenses related to COVID-19.
Some insurers have extended additional benefits to life insurance policyholders diagnosed with COVID-19, such as complimentary lump sum payments upon diagnosis, as well as daily cash payment for the duration of hospitalisation, according to a press release by MAS.
MAS supports these efforts by financial institutions to work constructively with customers affected by COVID-19 while adhering to prudent risk assessments. The various measures will help corporates and individuals facing short-term cash flow constraints and provide timely insurance coverage for policyholders affected by COVID-19. Taken together, these measures should help to buffer some of the impact on corporates and individuals from the COVID-19 outbreak.