- Abu Dhabi – Rami Samih
Date: September 30, 2020 Bank letters of guarantee continued to rise for the second month in a row, after a 5-month decline due to the repercussions of the new Corona virus (Covid 19), in an indication of the return of economic growth in the country, and the thirst of many sectors for bank financing.
Central Bank statistics revealed that banks increased their financing for bank guarantee letters to 98 billion and 740 million dirhams at the end of July, compared to 96 billion and 35 million dirhams at the end of last June, an increase on a monthly basis by 2.8%, or 2.7 billion dirhams.
According to the accounts of the Economic Statement, the value of letters of guarantee issued by banks to their clients from institutions and companies operating in the state in all economic sectors amounted to about 2.77 billion dirhams during the months of July and June.
The increase achieved coincides during the last months of June and July, after the gradual reopening of the UAE economy since the end of last May after the closure of several months due to the repercussions of the pandemic, and thus the increase reflects a good start for non-oil economic activities. The past seven years after reaching 106.1 billion.