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The tax exemption scheme for
syndicated offshore credit and underwriting facilities
was introduced to promote the development of loan
and debt syndication activities in Singapore.
Under the scheme, income earned by financial institutions
in Singapore from arranging and participating
in syndicated facilities denominated in foreign
currencies for non-resident borrowers is exempt
from tax. The scheme has resulted in the growth
of the loan and debt syndication activities in
Singapore. In the past three years, an average
of $13.5 billion of such facilities were syndicated
by financial institutions in Singapore annually.
The scheme is due to expire on
31 March 1998. I have, however, decided to extend
it for another five years. In addition, I have
also decided to extend the scheme to credit and
debt facilities which are syndicated by financial
institutions in Singapore for Singapore borrowers,
provided the funds raised are used outside Singapore.
These measures will help to further develop the
syndication market in Singapore. They will take
effect from 1 April 1998. |
