The UAE, which has reported 4,123 cases of the virus until April 12, is seeking to stem the spread of the disease by virtually stopping the vital sectors such as tourism and transportation.
To compensate for this, the central bank announced over the past few weeks, measures worth $ 70 billion to ensure liquidity in the banking system, so that banks can support private sector companies, small enterprises and individuals.
Since the launch of the support plan on March 14, the bank has provided ten billion dirhams ($ 2.72 billion) to banks in the form of zero interest financing and over 61 billion dirhams in the form of cuts in mandatory cash reserves, the bank said in a statement on Sunday evening.
The bank said that the money “will be used directly for the benefit of companies and consumers who have been negatively affected by the consequences of Covid-19”.
“We urge banks and financial institutions to work in accordance with the interests of individuals, private sector companies and small and medium-sized companies, because of the importance of their role in driving economic growth in the country,” the bank’s governor, Abdul Hamid Saeed, said in the statement.
He urged banks that had not yet confirmed their participation in the plan to do so as soon as possible.