No need for govt guarantee for loans to developers: Mah

Source : Business Times - 13 Apr 2009

There is no need for the government to step in as loan guarantors for property developers, even though banks have generally become more cautious on lending to them as well, said Minister for National Development Mah Bow Tan.

Speaking in Parliament on Monday, Mr Mah argued that there is still substantial lending being made to the industry.

According to data from the Monetary Authority of Singapore, the total loans to the building and construction sector - of which loans to developers account for the majority - jumped 22 per cent in the 12 months leading up to February this year.

‘While this growth has tapered off in recent months, the total loans to the sector is still at a high level of $50 billion,’ he said. ‘Hence I do not think the current situation warrants the government stepping in as a guarantor for loans to developers.’