[Superleveraged!] Sinkies' household debt is 77.2% of GDP!

[Rogue Trader]

Singapore's household debt predicted to hit 77.2% of GDP

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Relatively higher than Asian peers.

According to Bank of America Merrill Lynch, it estimates Singapore's household debt at 77.2% of GDP in 1Q, relatively high compared to other Asian counterparts.

Here's more:

The government is taking steps to cool the secondary market for public housing and ensure that households do not over-leverage. In June, the Monetary Authority of Singapore introduced a total debt servicing ratio (TDSR) framework for property loans granted by financial institutions to individuals.

The MAS is mindful of the risks when Singapore interest rates begin normalizing (ie, rising), highlighting that an estimated 5-10% of borrowers have over-leveraged on property purchases.

The Housing Development Board (HDB) has introduced more measures to cool the resale market for HDB flats. The mortgage servicing ratio (MSR) has been reduced to 30% of gross monthly income, down from 35%.

Furthermore, Singapore permanent residents (PR) will now have to wait three years before they are eligible to purchase a resale public flat. Previously, they were able to buy resale flats upon attaining PR status. The measures took effect immediately, after the announcement on Tuesday.

 

[Rogue Trader]

Fret not! Our scholar Minister already say our financial health is like Serena Wee's neh neh -- "Good shape"!

S'pore household balance sheets in "good shape": Lawrence Wong
By Sharon See

POSTED: 12 Aug 2013 5:54 PM


SINGAPORE: Most heavy borrowers in Singapore have above average income levels, which means they are less likely to default on their loans.

Acting Culture, Community and Youth Minister Lawrence Wong said this in response to questions in Parliament on household debts from Nominated MP Laurence Lien and Non-Constituency MP Yee Jenn Jong.

On the whole, Mr Wong said that Singapore's household balance sheets are in "good shape". The debt-to-income ratio is estimated to be 2.1 times in 2012, which Mr Wong said is "significantly lower" than the middle of the last decade, when it peaked at 2.6 times.

He said this means households are not more stretched than they were in the last decade.

On borrowers who are "over-leveraged", or those with debt service burdens exceeding 60 per cent of their income, Mr Wong said most of them have incomes higher than the median household income of S$6,000.

He added that nearly 90 per cent of these borrowers are servicing private property loans, and more than 80 per cent are servicing only one loan.

However, Mr Wong cautioned against being complacent on household leverage, as even those with smaller debts (debt service burdens below 60 per cent) will face difficulty when interest rates rise.

Mr Wong said: "We will have to prevent the situation where credit supply at low interest rates drives up property prices, taking prices beyond levels that can be sustained by underlying income growth, and this is why the government has taken a series of pro-active measures to restrain borrowings for property purchases.

"Apart from housing loans, MAS is also dealing with other components of household debt. As members would be aware, MAS has re-introduced loan-to-value limits, and 10-year curbs for car loans.

"MAS has also proposed new rules on unsecured credit and credit cards to help individuals with credit problems avoid further debt. MAS will continue to encourage prudence in lending and borrowing, and help to keep household debt at a manageable level."

- CNA/ac

 

[Administrator]

It is hard to be out of shape when it is flat.

Fret not! Our scholar Minister already say our financial health is like Serena Wee's neh neh -- "Good shape"!

S'pore household balance sheets in "good shape": Lawrence Wong
By Sharon See

POSTED: 12 Aug 2013 5:54 PM


SINGAPORE: Most heavy borrowers in Singapore have above average income levels, which means they are less likely to default on their loans.

Acting Culture, Community and Youth Minister Lawrence Wong said this in response to questions in Parliament on household debts from Nominated MP Laurence Lien and Non-Constituency MP Yee Jenn Jong.

On the whole, Mr Wong said that Singapore's household balance sheets are in "good shape". The debt-to-income ratio is estimated to be 2.1 times in 2012, which Mr Wong said is "significantly lower" than the middle of the last decade, when it peaked at 2.6 times.

He said this means households are not more stretched than they were in the last decade.

On borrowers who are "over-leveraged", or those with debt service burdens exceeding 60 per cent of their income, Mr Wong said most of them have incomes higher than the median household income of S$6,000.

He added that nearly 90 per cent of these borrowers are servicing private property loans, and more than 80 per cent are servicing only one loan.

However, Mr Wong cautioned against being complacent on household leverage, as even those with smaller debts (debt service burdens below 60 per cent) will face difficulty when interest rates rise.

Mr Wong said: "We will have to prevent the situation where credit supply at low interest rates drives up property prices, taking prices beyond levels that can be sustained by underlying income growth, and this is why the government has taken a series of pro-active measures to restrain borrowings for property purchases.

"Apart from housing loans, MAS is also dealing with other components of household debt. As members would be aware, MAS has re-introduced loan-to-value limits, and 10-year curbs for car loans.

"MAS has also proposed new rules on unsecured credit and credit cards to help individuals with credit problems avoid further debt. MAS will continue to encourage prudence in lending and borrowing, and help to keep household debt at a manageable level."

- CNA/ac

 

[escher]

Singapore's household debt predicted to hit 77.2% of GDP

According to Bank of America Merrill Lynch, it estimates Singapore's household debt at 77.2% of GDP in 1Q, relatively high compared to other Asian counterparts

What else do you expect after decades of screwing and fucking of sinkies $$$$ to the tune of 700++ BILLIONS into smear of shit on sole of shoe LKY stinkapore sovereign funds and to pay the obscene ripoffs to PAP walking bags of excrement, civil serpents and kangaroos and their entire families?

Those bastards got the fucking money.
Singkies end up in debt up to their eyebrows

And still being screwed and fucked of billions for the glory of smear of shit on sole of shoe LKY

MAY LKY GO SOON SOON TO THE DEMONS AND GHOULS ALL WAITING TO SCREW AND FUCK HIM WITH THE SAME KIND OF MERCY LKY IS KNOWN FOR

 

[GOD IS MY DOG]

gooood......................velly gooood...................

as i've predicted.......................eventually some crisis will come.................and soon..............the property will crash..............

then more people will know how good PAP has been to them..................

 

[watchman8]

If you look at whole picture, this is a massive transfer of wealth from people to pap govt. these housing mortgages are taken to pay pap govt for over priced homes.

The household debt is a form of long term tax that goes straight into country's reserves in GIC and temasick. Yet the pap blood suckers want to tax more to finance a little bit more of health insurance.

 

[TopSage]

Fret not! Our scholar Minister already say our financial health is like Serena Wee's neh neh -- "Good shape"!

During American Financial crisis, on average the each American is asset position taking away debts...but only morons use AVERAGE to say there is no problem because the person holding the DEBT is different from the person who has the asset.

One billionaire averages to 1000 millionaires...See the techniques the PAP use to deny problems. no wonder this country is in its current shape.

 

[po2wq]

Fret not! Our scholar Minister already say our financial health is like Serena Wee's neh neh -- "Good shape"!...

u mean as gud shape as ah serena's neh-neh ...

 

[Rogue Trader]

It is hard to be out of shape when it is flat.

Our economy is actually A cup but artificially pushed up??

 

[Rogue Trader]

During American Financial crisis, on average the each American is asset position taking away debts...but only morons use AVERAGE to say there is no problem because the person holding the DEBT is different from the person who has the asset.

One billionaire averages to 1000 millionaires...See the techniques the PAP use to deny problems. no wonder this country is in its current shape.

That's true. When a woman's left breast is A cup and right one is C, she cannot claim to be a B cupper

 

[Rogue Trader]

How dangerous Is Singapore's soaring household debt?

Published: Sunday, 14 Jul 2013 | 9:16 PM ET
By: Ansuya Harjani | Writer, CNBC Asia

The wealthy Southeast Asian nation Singapore has seen soaring household debt levels in recent years as low interest rates have led to a borrowing spree, prompting the government to step in to curb demand.

This island state, which is an important financial hub, has among the highest level of household borrowing relative to gross domestic product (GDP) in Asia at 77 percent, rising from around 64 percent in 2007. Home loans, which account for around three quarters of household debt, have grown rapidly in recent years together with a booming property market.

Now with bond yields beginning to climb – the 10-year Singapore government bond yield has risen to 2.5 percent from 1.4 percent in May – concerns are growing over whether there is a debt bubble in the making.

"The buildup in leverage starts becoming a risk when short term rates – which are linked to mortgage rates - start to move higher," said Taimur Baig, economist at Deutsche Bank, noting that this could take place as early as 2014 if the U.S. Federal Reserve decides to hike interest rates. The benchmark Singapore interbank overnight rate (SIBOR), used to price housing loans, tracks rates in the U.S.

"It's definitely a concern, any country that has household debt at a high level will face problems when interest rates go up," said Baig. "While there may not be bankruptcies, there will be a transition that entails some pain."

Within Asia, Singapore ranks just behind South Korea and Malaysia whose household debt levels stand at 88 percent and 80.5 percent of GDP, respectively.

Economists, however, note that the healthy growth in financial assets in Singapore will temper the blow from higher interest rates.

"While, rising household debt is a concern, it should also be viewed in context with the asset side of the balance sheet. If needed, they [borrowers] could draw down on deposits," said Michael Wan, economist at Credit Suisse.

"It is a popular theory with owners of real estate that there is holding power, people have the wealth. That argument has some merit," added Baig.

Household financial assets – which include currency, bank deposits, shares and securities – have risen to 86 percent of GDP from 72 percent in 2007.

"I think household sector balance sheets are strong – so it's not a concern around solvency," said Wan. "When interest rates do rise, households will have to pay higher monthly mortgage payments as portion of income - not just for housing but to service car loans. This could crimp private consumption – I think that's where the risk is, " he said. Private consumption makes up around 40 percent of the country's GDP.

In the recent months, the Monetary Authority of Singapore (MAS), the country's de facto central bank, has introduced new measures to limit consumer debt.

Most recently at the end of June the MAS announced a new framework which requires financial institutions to take into account borrowers' other outstanding debt obligations when granting a property loan. The rule ensures that the property buyer's monthly loan payments do not exceed 60 percent of his income.

This framework used for approving home loans, may be extended to other types of loans as well, including car and student loans, the Straits Times reported on Friday.

"We believe these measures are prudent and will limit systemic risk in the event of an economic deterioration," David Mann, head of regional research, Asia at Standard Chartered wrote in a report called "Asia Leverage Uncovered" earlier this month.

While debt levels seem manageable, the rise in leverage should be monitored as pockets of over-leverage are inevitable, he added.


By CNBC's Ansuya Harjani

 

[sleaguepunter]

lawrence wong tok cock, where got 80% sporean only have one housing loan?

there are at least 4 type of household loans,
1. housing loan
2. renovation loan
3. car loan
4. monthly credit card payment

if the flat/condo is newly brought, so other than the mortgage loan, the renovation loan confirm have. Then to show off, car is a must have and to round up, credit card payment to support the lavish lifestyle.

even the couple the prudent type, still have at least the housing and renovation loans to pay monthly.

 

[Rogue Trader]

So Lky's Golden Period is just construction spending and leasehold property "sales". Internal demand was driven up by FT policy and cheap credit with very little else exported. The FT policy has also destroyed labour force's productivity and value creation.

I hope and pray he lives for many more years to witness how this fully unravels...

 

[Scrooball (clone)]

I will be surprised if Sinkies are not in debt.

20% of income gets locked up in CPF
Flat costs $500,000
Car costs $150,000 with COE
Childcare is $1,000 per month
Medisave is useless for most medical ailments
Real income has plunged with inflation

 

[scbccb]

Where are the melons?

Fret not! Our scholar Minister already say our financial health is like Serena Wee's neh neh -- "Good shape"!

S'pore household balance sheets in "good shape": Lawrence Wong

 

[Scrooball (clone)]

We also have a Shit Minister who steals toothpicks and tell us to feel 'rich' by looking at CPF statements

 

[zeddy]

You know S'poreans are in deep debts when even a Minister admitted to stealing toothpicks..

 

[Cerebral]

It is hard to be out of shape when it is flat.

Flat is a shape too.......

 

[escher]

You know S'poreans are in deep debts when even a Minister admitted to stealing toothpicks..

Ministers are getting obscene pay sucked and fucked from sinkies.
That was on the fucking lie that they need to be given fat fucking pay or they be corrupt and will take even more.
Seems that even when paid millions, Minister still felt morally obliged to steal toothpicks to show that they are truly the scum of society with absolutely no moral compass at all inside them

 

[SQPilot]

For goodness sake it's not even 100% and even if it is so what? Our reserves could take care of it.