The Central Bank of the UAE has issued guidance to financial institutions (FIs) on the application of International Financial Reporting Standard 9 (IFRS 9) to ensure that credit losses due to COVID-19 are appropriately calculated.
The guidance has been issued after a consultation with stakeholders in the financial sector.
IFRS 9 guidance proposes practical solutions to manage the impact of economic uncertainty on the estimation of expected credit losses, while remaining compliant with IFRS 9.
Accoridng to the regulator, the guidance, "also aims to ensure transparency and disclosure, contributing to strengthened financial stability in the UAE."
The CBUAE has announced a total stimulus of 256 billion dirhams.
On May 16, the regulator announced that more than 75 percent of the 50 billion dirhams liquidity provided to the UAE banks as part of the Targeted Economic Support Scheme (TESS)has already been drawn-down by top local banks.
(Writing by Seban Scaria, editing by Daniel Luiz)
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