Regulatory Alerts2024-06-27 | 82569Revised Consortium Agreement for PF Lending Institutions to Ensure Soft-landing in Real Estate Market
The Financial Services Commission announced the revision of the project finance lending institutions' consortium agreement to enforce stricter controls on maturity extensions and interest payment deferments. The updated rules require third-party viability assessments and a supermajority consent of lending institutions for repeated maturity extensions, while limiting interest deferments to cases where significant late payments have been repaid. These measures aim to prevent indiscriminate support for unviable projects and ensure orderly market soft-landing, with sector-specific agreements to be updated by early July.
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