133,000 customers benefitted from the liquidity support of CBUAE extended through banks
The First Abu Dhabi Bank in Abu Dhabi. Fifteen leading UAE banks have fully utilised their share of the Dh50 billion liquidity support package provided by the Central Bank of UAE (CBUAE) under its Targeted Economic Support Scheme (TESS).
Dubai: The UAE’s banking sector continues to roll out relief measures to individuals and businesses impacted by the COVID-19 outbreak with 15 national banks fully utilizing their share of the Dh50 billion liquidity support package provided by the Central Bank of UAE (CBUAE) under its Targeted Economic Support Scheme (TESS).
Last week, the temporary committee that handles impacts of COVID-19 held its fourth meeting, chaired by Sultan bin Saeed Al Mansouri, Minister of Economy discussed the national efforts to support the economy and the best ways of limiting the effects of the pandemic on various business sectors.
According to the committee, 84.5 per cent of the total incentives under the TESS programme of the CBUAE was utilized by 25 banks with 15 leading banks utilizing 100 per cent of their shares for the benefit more than 133,000 clients, with many of them being small and medium enterprises (SMEs).
Clarifications
To incentivise banks and finance companies to draw-down more from the TESS liquidity zero cost funding facility designated to be used by impacted private corporate customers, SMEs and individuals, the CBUAE had recently issued a notice that includes additional clarifications on the deferral requests under the TESS and aims to further facilitate the implementation of the scheme.
Following the CBUAE notice all banks and finance companies are required to consider the specific circumstances of impacted borrowers to receive a deferral of repayment within the TESS, as options for granting deferrals include the options such as deferment of principal only; deferment of both interest/profits and principal repayment, and deferment of interest/profits only.
The notice highlighted that the most in-demand option will be for the deferment of both interest/profits and principal repayment, unless the borrower’s circumstances allows for accepting other options.
“CBUAE welcomes initiatives taken by banks to support and relieve their impacted customers without drawing against the TESS programme which is available to them,” the apex bank said in a recent statement.
