The Central Bank of the UAE (CBUAE) revealed a list of banks that availed more than 50 percent of the Targeted Economic Support Scheme’s (TESS) allocated liquidity facility.
The TESS, launched on March 14, includes a liquidity relief tool of 50 billion dirhams ($13.6 billion) offered by the CBUAE through banks to eligible customers who wish to apply for a deferment.
The list of lenders and the percentage of TESS that they availed:
Abu Dhabi Commercial Bank
First Abu Dhabi Bank
Dubai Islamic Bank
Emirates Islamic Bank
National Bank of Fujairah
Commercial Bank International
Bank of Sharjah
Arab Bank for Investment & Foreign Trade
Sharjah Islamic Bank
National Bank of Ras Al Khaimah
National Bank of Umm Al Qaiwain
United Arab Bank
UAE banks have used so far 77 percent of the TESS’s allocated liquidity facility, or an equivalent of 38.5 billion dirhams of allocated funds, the CBUAE said in a statement.
The CBUAE also issued a notice that includes additional clarifications on the deferral requests under the TESS, to further facilitate the implementation of the scheme.
According to the notice, “all banks and finance companies are required to consider the specific circumstances of impacted borrowers to receive a deferral of repayment within the TESS, as options for granting deferrals include the following:
- Deferment of principal only, or
- Deferment of both interest/profits and principal repayment, or
- Deferment of interest/profits only.”
The notice also highlights that the most in-demand option will be for the deferment of both interest/profits and principal repayment, unless the borrower’s circumstances allow for accepting other options.
On April 23, the CBUAE announced that banks had already utilized more than 60 percent of the allocated funds from the TESS facility.
The aggregate value of all capital and liquidity measures adopted by the Central Bank of the UAE (CBUAE) under the TESS amounts to 256 billion dirhams.
The Governor of the CBUAE met with the CEOs of all banks on April 12 to discuss the implementation of the TESS.
(Writing by Gerard Aoun; editing by Seban Scaria)
#UAE #FINANCIALSERVICES #TESS
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