United Overseas Bank (UOB) has approved loans worth $4 billion for businesses in Singapore. These loans come under Enterprise Singapore’s Temporary Bridging Loan Programme, media reports said. For businesses, the Temporary Bridging Loan Programme provides access to working capital.
The bank’s decision comes after the Singapore government increased risk-share of loans to 90 percent. For that reason, UOB has extended the loans for its mid-sized enterprise clients, especially in sectors adversely affected by the ongoing pandemic.
It is reported that these sectors include construction, consumer staples, retail and hospitality. The bank has digitised its loan application process. This will allow clients to receive their funds in a span of one week, media reports said.
In addition, UOB has introduced a $3b relief assistance for businesses affected by the pandemic. The bank is also collaborating with Singapore Press Holdings and Singtel to provide new laptops and online learning resources for 250 underprivileged students in Singapore, media reports said.
Last week, the city-state extended the lockdown to June 1. Mr Wee Ee Cheong, Deputy Chairman and Chief Executive Officer, UOB, told the media, “At UOB, our duty of care to our communities includes helping the members of our society who may be struggling through these difficult to better times. Through UOB My Digital Space, we are bridging the digital gap for children from needy families and ensuring that they are not left out of the world of opportunities education can bring. COVID-19 has brought with it a disruption to school-based learning across Asia and this is being most keenly felt by children from disadvantaged backgrounds. This initiative is part of our #UnitedForYou COVID-19 Relief Programme to help our communities and customers through the COVID-19 pandemic and to emerge stronger together.”