President Nathan said he is not rubber stamping the deposit guarantee move, backed by government reserves.
By
Goh Chin Lian, In Kuwait City
IN MAKING any decision to draw on the reserves of the Singapore Government, the President can get expert advice from his six-member council of advisors, President SR Nathan said here.
He said in respose to a question that members of the Council of Presidential Advisers are all well-informed about the economy and financial matters.
Last month's $150 billion bank guarantee package was the first time the Government called on the President to exercise his custodial powers over the nation's reserves.
In his first comments since exercising his powers to approve a potential draw on reserves, Mr Nathan said at one point, 'I'm not rubber stamping, you know.'
The Government's announcement that it would guarantee all bank deposits of individuals and corporates here until the end of 2010 is aimed at maintaining public confidence in Singapore's banking system amid the financial turmoil.
The guarantee is backed by $150 billion in Government reserves.
Prime Minister Lee Hsien Loong said in Parliament last month that the Government sought the President's concurrence, and that the President consulted the Council, which is headed by Singapore Exchange chairman J.Y. Pillay.
Trade and Industry Minister Lim Hng Kiang had also said the Government might have to use very little of the money or none at all, given the robustness of Singapore's banking system.
Asked about his role as a gatekeeper, Mr Nathan noted that the occasion for a draw on the reserves has not happened yet, but a procedure is in place.
'If it does come, I've got a Council of Presidential Advisers, all of whom are knowledgeable, who know the economy, who know finance, who know everything, who will have to see through and see justification for the draw,' he said.
'And that's the procedure we will follow. It has not happened. But in giving the guarantee to the bank, it has been mentioned that I have given my approval should a draw become necessary. 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.'
