The Central Bank launched this plan in March 2020 with the aim of supporting the UAE economy in general to face the repercussions of the “Covid-19” pandemic through an integrated set of support measures for the banking sector related to financing, liquidity, lending and capital.
The Central Bank stated that within the framework of this initiative, it will extend the period of implementing zero-cost facilities amounting to 50 billion dirhams, which benefit both corporate and individual bank customers and facilitate the management of liquidity in banks through guaranteed financing at zero cost, for an additional 6 months.
He added that the banks and financing companies participating in the plan will be able, from January 1, 2021, to grant new loans and facilities to their clients affected by the repercussions of the epidemic, within the terms and conditions applied and specified in the criteria for the targeted comprehensive economic support plan.
Abdul Hamid Muhammad Saeed Al-Ahmadi, Governor of the Central Bank of the United Arab Emirates, said: The Central Bank affirms its commitment to support the financial system of the United Arab Emirates and take the necessary measures to accelerate the recovery of the economy from the repercussions of the Covid-19 epidemic. Banks, small and medium enterprises, and individuals.
Al-Ahmadi added: We are confident that this initiative comes to protect the economy from the impact of the epidemic and puts us in an ideal position to recover once the epidemic is completely eliminated.
The targeted comprehensive economic support plan launched by the Central Bank has succeeded in enhancing the ability of the financial system to support individuals and businesses affected by the repercussions of the Covid-19 pandemic. To date, more than 310,000 individual clients, about 10,000 small and medium enterprises, and more than 1,500 private sector companies have benefited from the loan exemption program included in the support plan, according to the Emirates News Agency, WAM.
The Central Bank also announced the gradual implementation of the remaining parts of the Basel III compliance project, to be done in three phases, starting from the second quarter of 2021 until the second quarter of 2022, as part of its commitment to implementing international regulatory standards in the UAE.