UAE’s Central Bank View on the Implementation of the Stimulus Relief Scheme

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The Central Bank of the UAE wants banks to accelerate the implementation of the stimulus relief Scheme

The Central Bank of the United Arab Emirates (CBUAE) has urged all the banks operating within the country to extend support for individuals, medium and small size enterprises and corporates whose business operations have been impacted by to the novel coronavirus.

On April 12, 2020, Abdulhamid Saeed, the Governor at CBUAE, had a meeting with the CEOs of all the banks operating within the UAE to emphasize the importance of extending help to individuals and private companies who can benefit from the Targeted Economic Support Scheme (TESS).

At the meeting, bank representatives endorsed the steps taken by the Central Bank to protect the banking sector and the county’s economy from the financial impact of COVID-19. The representatives of many banks expressed their willingness to be part of the Support Scheme.

In addition, the bank CEOs confirmed the Central Bank about their decision to avail the benefits that are being offered by the Support Scheme.

The Governor of the CBUAE conducted a thorough discussion regarding the measures that will be undertaken as part of the TESS and emphasized the significance of the commitment by banks for utilizing the full potential of the Scheme for the benefit of individuals, medium and small size entities, and large corporations as well as to protect the national economy.

Many banks shared their utilization progress of the Support Scheme for providing support to affected consumers, including individuals, medium and small enterprises and private corporations.

Since the initiation of the Scheme on 14 March 2020, AED10 billion has been distributed among the participating banks at zero interest rate, and more than AED61 billion in lowered cash reserve requirements, which are to be deployed to benefit consumers and companies adversely affected by the outbreak.

Abdulhamid Saeed, governor at CBUAE, said that it is encouraging to see that more and more banks operating within the UAE are supporting the Scheme, as we aim to protect the individuals and corporations from the adverse financial impact of the COVID-19 pandemic.

The CBUAE released a statement in which it said that it is encouraging the boards of banks to accelerate the confirmation process for implementing the TESS measures.

The governor further said that the Central Bank will be reaching out to the banks in the coming days to get a better understanding of their plans to serve the objectives of the Scheme and to help their consumers to deal with the impact of the outbreak.

Abdulhamid Saeed also said that he is confident that the Support Scheme will help in strengthening the economic activity in the country as well as mitigating the financial risk, while ensuring that businesses are ready for the post-pandemic era.

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