Singapore loosens dollar lending policy

Singapore loosens dollar lending policy

SINGAPORE: The government said Tuesday it would liberalize its
Singapore dollar lending policy to allow international investors
to participate more in the city-state's capital markets.

The new policy will allow individuals and companies from March
20 to borrow Singapore dollars for use overseas, said Deputy
Prime Minister Lee Hsien Loong, who is also finance minister and
head of the Monetary Authority of Singapore.

Banks and other financial institutions, however, will continue
to be banned from lending more than S$5 million (US$2.75 million)
to nonresidents if they have reason to believe the loan will be
used to speculate on the Singapore dollar exchange rate. -- AP