Overseas ventures are often associated with higher risks. This makes it a challenge for companies who are looking at increasing their fixed asset investment abroad or financing their overseas projects to obtain loans.
The Internationalisation Finance (IF) Scheme is designed to address this issue through a system of co-sharing of default risks between IE Singapore and our Participating Financial Institutions (PFIs).
As part of the government’s business financing enhancements announced in December 2008 and February 2009, the turnover cap criteria has been relaxed to allow even more Singapore-based companies to tap on the Scheme. The maximum loan quantum has also been increased from S$15 million to S$50 million per borrower group. To increase the PFIs’ appetite to extend financing, IE Singapore has also increased its portion of risk sharing under the Scheme from 70 to 80 per cent.
As announced on 28 December 2009, the above enhancements will be extended till 31 January 2011 to facilitate continued accessibility of cross border loans by Singapore-based companies.
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