Plunging Oil Prices Create Bad-Loan Pain for Singapore Banks
- DBS made S$700m of loans to oil-services firm Swiber, units
- Moody’s says energy lending is 5.3 percent of Singapore loans
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The plunge in oil prices is catching up with Singapore’s three largest banks.
Last week, Swiber Holdings Ltd., a small Singapore company that provides construction services for international oil and gas projects, filed a petition to liquidate its operations, after facing payment demands from creditors at a time when its business was under pressure. DBS Group Holdings Ltd., one of Swiber’s largest lenders, said it only expects to recover about half of the S$700 million ($522 million) it loaned to the firm and its units. Swiber subsequently said it’s dropping the liquidation in favor of a restructure plan.