Singapore Defaults Boost Calls for Aid as Oil Firms Falter
- Government has introduced off-budget measures in the past
- More bonds may default without further bank help: UBS analysts
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Singaporean companies struggling to meet debt obligations as oil prices slump may get more support from the government if the economy deteriorates further, according to global auditing firm EY. UBS Group AG’s wealth management unit warns more defaults are possible.
“It’s possible that off-budget measures may be introduced, as the government has done previously, to help these businesses tide over the slowdown should economic conditions worsen,” said Chia Seng Chye, a tax partner at EY in Singapore. “The Singapore government is already encouraging businesses to innovate and transform against increasing headwinds.”