SINGAPORE will guarantee all local and foreign currency deposits in banks, finance companies and investment banks operating in the country until end of 2010.
The guarantee, to be backed by S$150 billion of government reserves, will take immediate effect, said the Ministry of Finance and Monetary Authority of Singapore (MAS) on Thursday night.

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Mother of all U-turns...

Where are our leaders?

The DBS minibonds issue is as clear as water, yet not one has the courage to say something.

Sad, but so be it.

Having individual 3rd party doesn't prove anything at all.

I wonder how many % will be paid back to these investors.

Want do be leader? Do you have courage?

Aiyoh... so fast U-turn... minister yesterday not thinking right har?

well done MAS & MoF. at least that helps to prevent other people's financial problem from spilling into singapore to destabilise our financial system

unwilling, but need to, in order to level the playing field, to maintain whatever competitive advantage SG has.

when HK announced their guarantee, I was in HK. the reaction was fast and furious. people in financial market IMMEDIATELY making arrangement to move money from SG to HK, no joke !

Personally, I feel this seemingly U turn it is a decision that has been taken not so willingly, if there have been other alternatives.

Many depositors have been quietly tranfering their funds out online - locals to the local banks and foreigners to countries that guarantees their deposit. If we don't also issue this guarantee, more depositors will do so. And it will put our status as a premier banking center at a hugh risk. Most will not buy 'our banks are strong' statements. They need more comfort than that.

Sometime back, MM stated something to the effect that Singapore cannot allow Changi to fail, even at the expense of SIA. The same could be said the confidence in our banking system.

The funds, the jobs banks provide, the rentals they pay - it is too great a chance to take.

Thus in reality, we did not have much of a choice.

Good move.

But reluctantly, isn't it?

150b. Scam! Not peanut leh.

Always REACTIVE... never PROACTIVE!

Although the move is mainly to protect the Banks and Big Investors, it will indirectly look after the average Singaporeans with their life savings.

Having said that, it is better late than never.