The Singapore government will launch a pilot loan securitisation scheme to help small- and medium-sized enterprises (SMEs) obtain adequate financing next January.
Vivian Balakrishnan, Singapore's minister for Community Development said that the Development Bank of Singapore (DBS) has been appointed to manage the Singapore$300m (US$176.5m) loan securitisation programme.
"Individually, SMEs may not be seen as attractive credits. But a well-diversified portfolio of SMEs will collectively be more appealing to investors. By pooling together a portfolio of SMEs credits, the capital markets can potentially be a viable avenue for SMEs to raise funds," he said.
To help further increase the SMEs' competitive edge, he said the government hopes to facilitate another Singapore$300m (US$176.5) of loans to SMEs and companies going abroad under the loan insurance scheme for the next five years.
