UAE's loan deferment scheme benefits over 320,000 residents, businesses

Approximately 11,500 SMEs, private sector firms among beneficiaries of TESS programme

  
Business meeting with a group of entrepreneurs on a conference table in a office. Image used for illustrative purpose.

Business meeting with a group of entrepreneurs on a conference table in a office. Image used for illustrative purpose.

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About 310,000 individuals have benefited from the UAE’s loan deferment initiative since the onset of the coronavirus pandemic, according to the latest statistics.

The number of small and medium-sized enterprises (SMEs) and other companies in the private sector who have sought financial relief has also reached at least 11,500.

The latest data were mentioned in a report on the Targeted Economic Support Scheme (TESS) during a regular meeting of the board of directors of the UAE Central Bank, state news agency WAM said late Monday.

In March, the central bank introduced the support scheme as it unveiled a stimulus package worth 100 billion UAE dirhams ($27.2bln) to help businesses and individuals affected by the coronavirus pandemic.

It allows banks to temporarily defer the repayments of outstanding loans made by private sector corporates, SMEs and individuals, as well as boost their lending capacity.

The relief measure includes the allocation of 50 billion UAE dirhams to provide zero-interest, collateralised loans for UAE-based banks.

Latest figures

According to the latest statistics, more than 310,000 “clients of personal banking services” have availed themselves of the payment deferrals.

An additional 10,000 SMEs, and more than 1,500 companies, have also benefited from the scheme.

The banking regulator had earlier reported that UAE lenders were able to draw down a total of 44.72 billion UAE dirhams from the 50 billion UAE dirhams liquidity facility until the end of July.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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