The UAE Central Bank today said that Dh 71 billion has been granted to local banks in the form of zero interest funding and reduced cash reserve obligations to combat the shock of coronavirus.
Under the Targeted Economic Support Scheme (Tess) announced on March 14, Dh 10 billion has been provided to banks in the form of zero interest funding and Dh 61 billion to support cash reserve obligations.
A total of Dh 50 billion funds were made available by the regulator to local banks under Tess at zero cost to extend finance to individuals and SMEs. The regulator advised banks to support private sector corporates, small and medium companies and individuals to relieve the effects of COVID-19
The regulator asked those banks who have not yet confirmed their participation in the Tess to do it as soon as possible to safeguard the industries and economy against the impact of coronavirus.
“We urge banks and financial institutions to act in the best interest of retail clients, private sector corporates, and SMEs, which are the growth engine of our economy. Banks who have yet to confirm their participation in the Tess are called upon to do so at the earliest, to protect our economy,” shared Abdulhamid Saeed, governor of the Central Bank.
The Central Bank earlier this month had doubled the size of its incentive package to Dh 256 billion in order to assist banks with liquidity and help firms and individuals through different measures.
Abdulhamid Saeed, governor of the Central Bank, held a meeting with the senior officials, local banks and urged them to expedite their consent to implement stimulus measures as soon as possible.
The Central Bank will also be reaching out to the banks during the coming days to better understand how they plan to serve the objectives of Tess and help their customers to cope with the consequences of the COVID-19 pandemic.
“It is encouraging to see that banks operating in the UAE are drawing upon the Targeted Economic Support Scheme to support the liquidity needs of their customers, as we aim to cushion the economic impact of the pandemic on companies as well as individuals,” said Abdulhamid Saeed.