Govt aid for Debt defaults
Singaporean companies struggling to meet debt obligations as oil prices slump may get more support from the government if the economy deteriorates further, according to global auditing firm EY. UBS Group AG’s wealth management unit warns more defaults are possible. Singapore’s Finance Ministry foresaw troubles from the slide in commodity prices when it announced budget plans in March that included a loan assistance programme to help ease cash strains at smaller businesses. The situation has since worsened, with energy industry cutbacks leading to default at oil-services provider Swiber Holdings Ltd. About 28% of the S$18bn in corporate bonds due over the next 18 months are from industries facing structural headwinds.
