S'pore tightens credits

S'pore tightens credits

SINGAPORE (AFP): Banks in Singapore are tightening up housing loans to buyers of private properties in a bid to discourage speculators who have driven prices up by as much as 40 percent from a year ago.

Several local banks have in recent weeks been reducing the size of loans to borrowers thought to be buying properties for speculation, bank officials said yesterday.

"This is in response to the market situation. It is also in line with the government's move to curb property speculation," spokeswoman of one of the major local banks said.

A spokesman for United Overseas Bank said the amount given for the purchase of investment properties was less than that for the purchase of a first property for owner occupation.

"As a guide, while the group is prepared to give up to 90 percent to 100 percent financing for the first property, it would give about 70 percent for investment property," the spokesman said.