Monetary Authority of Singapore (MAS), the central bank of Singapore, has revealed that the exposure of the country’s banking sector to the indebted China Evergrande Group is ‘insignificant’

In a reply to parliamentary questions, Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS said that Singapore’s banking system exposure to China’s property sector is less than 1% of non-bank loans.

Shanmugaratnam added that country’s property developers with operations in China have exposure to 2.5% of loans to non-bank customers but it includes all loans to these developers, including their Chinese businesses.

“Our banking sector’s loan exposures to China Evergrande Group itself are insignificant,” Shanmugaratnam noted.

Last month, Chinese real-estate developer Evergrande Group, which is over $300bn in debt, announced that it will default on interest payments.

This caused a liquidity crisis in the country and affected markets around the world.

Singapore’s authorities noted that these events could impact China’s GDP growth and they are keeping an eye on any indirect or spillover effects on the Singapore economy.

Notably, the Chinese central bank has infused billions of dollars into the banking system to dampen the impact of the liquidity crisis.

Last week, Evergrande Group announced plans to offload a $1.5bn (CNY9.99bn) stake in Shengjing Bank.

State-owned Shenyang Shengjing Finance Investment Group has come forward to buy 1.75 billion non-publicly traded domestic shares of the lender.

Before that, the Hong Kong Monetary Authority (HKMA) had sought reports from lenders on their exposure to a troubled Chinese developer.