MAS Allays Concerns Following Oil Trader’s Credit Fallout
(24 April 2020 – Singapore) The Monetary Authority of Singapore (MAS) has reminded banks not to de-risk indiscriminately from the bunkering and oil trading sectors and to continue to apply judicious credit assessment on individual borrowers to manage their risks, following reports on the troubled Singapore oil firm Hin Leong.
In a joint statement, Enterprise Singapore (ESG), the Maritime and Port Authority of Singapore (MPA) and MAS said they are closely monitoring developments related to Hin Leong and the broader oil trading and bunkering sectors. Hin Leong reportedly owes a total of US$3.85 billion (S$5.5 billion) to 23 banks, with HSBC, ABN Amro, DBS and OCBC among its largest lenders. The firm plans to shift management of the company to PwC while withdrawing an application for court protection from creditors.
“Singapore’s oil trading sector remains resilient notwithstanding the challenges posed by the drop in global demand for energy” the MPA stated
“There will be no serious impact on Singapore’s oil bunkering industry” ESG said.
Subscribe