LAST month, the Singapore Government announced it would guarantee all bank deposits, backed by some $150 billion from its reserves — marking the first time the Elected President has been called on to exercise his custodial powers to approve a potential draw on reserves.
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Speaking to the media for the first time on the issue, President S R Nathan said in response to a question that “in giving the guarantee to the bank, it has been mentioned that I have given my approval should a draw become necessary.
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“And that’s a contingency — that you can’t wait for it to happen, so one had to say in advance. I’m not rubber stamping, you know.”
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Mr Nathan added that the need to draw on the nation’s reserves has not come about yet.
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A procedure, however, is in place should that time come — he can get expert advice from his six-member council of advisors, which is headed by Singapore Exchange chairman J Y Pillay.
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Said Mr Nathan: “If it does come, I’ve got a Council of Presidential Advisors, all of whom are knowledgeable, who know the economy, who know finance ...who will have to see through and see justification for the draw. And that’s the procedure we will follow.”
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Trade and Industry Minister Lim Hng Kiang has also previously said the Government might have to use very little of the money or none at all, given the robustness of Singapore’s banking system. AGENCIES
