• Published on 4 May 2020
• 2465 Views
• Print

HSBC widens trade support measures for Singapore businesses

HSBC Singapore has announced the widening of key trade measures to support corporate customers impacted by the ongoing disruption caused by COVID-19, following the bank’s initial trade measures announced on 14 February.     

60-day extension of trade loans  

For customers with a sound trade finance record, the bank increased its pre-approved extension of import trade loans from 30 days to 60 days, and for loans maturing on or before 30 June 2020 without any additional fee or penalty interest.  

In addition, HSBC will extend the relief to include export trade loans. This supports clients working capital needs, which may be impacted by the delay in clearing goods at ports or the lockdown restrictions hampering delivery of documents reaching certain destinations.   

Extension of additional measures 

In addition, the bank will continue to enable its corporate customers to access previously announced measures, including: 

• Continued waiver of amendment fees on letters of credit (LC) impacted by delays

The bank will continue to waive amendment fees for import documentary credit, including amendments such as extension of documentary credit (DC) validity, latest shipment date and presentation period.

• 1-hour turnaround on issuance of shipping guarantees

To help customers experiencing delays in receiving shipping documents from counterparties, the bank will continue to issue shipping guarantees within one hour, as opposed to the standard ‘same-day’ issuance. This means a customer can take transfer or receive imported goods faster and avoid demurrage charges. 

• Enhanced digital support for online trade applications

HSBC will continue to provide additional resources to assist customers in shifting on to digital platforms, including HSBCnet, trade transaction tracker and Instant@dvice.  

Iain Morrison, head of global trade and receivables finance at HSBC Singapore, said, “With the extension of Singapore’s circuit breaker and enduring global disruption, it’s clear that our clients require a second wave of support. Singapore remains a key international trading hub, and these extended measures aim to ease the working capital demands on our clients and their supply chains and, therefore, support the continued flow of Singapore’s commercial trade.” 

Re-disseminated by The Asian Banker