Abu Dhabi:  The Central Bank of the UAE (CBUAE) endorses banks’ progressive steps to support customers affected by the COVID-19 pandemic. To date, 77% is already drawn-down from the AED 50 billion liquidity facility within the Targeted Economic Support Scheme (TESS), equivalent to AED 38.5 billion of allocated funds.

To incentivise banks and finance companies to draw-down more from the TESS liquidity zero cost funding facility designated to be used by impacted private corporate customers, SMEs and individuals, the CBUAE has also issued a notice that includes additional clarifications on the deferral requests under the TESS and aims to further facilitate the implementation of the scheme. 

Pursuant 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 highlighted that the most in-demand option will be for the deferment of both interest/profits and principal repayment, unless the borrower’s circumstances allows for accepting other options.

CBUAE welcomes initiatives taken by banks to support and relieve their impacted customers without drawing against the TESS programme which is available to them.

The CBUAE discloses the list of banks that availed more than 50% of the allocated TESS liquidity facility which aims to protect and support the impacted customers during such unprecedented times

The CBUAE also urges banks to draw-drown the allocated funding and support the economy. 

Banks with more than 50% participation on the CBUAE Targeted Economic Support Scheme facility

Abu Dhabi Commercial Bank - 100%

First Abu Dhabi Bank - 100%

Emirates NBD - 100%

Dubai Islamic Bank - 100%

Emirates Islamic Bank - 100%

Noor Bank - 100%

National Bank of Fujairah - 100%

Commercial Bank International - 100%

Bank of Sharjah - 100%

Invest Bank - 100%

Arab Bank for Investment & Foreign Trade - 93%

Arab Bank - 76%

Mashreq Bank - 73%

Sharjah Islamic Bank - 67%

National Bank of Ras Al Khaimah - 58%

National Bank of Umm Al Qaiwain - 58%

United Arab Bank - 57%

Send us your press releases to pressrelease.zawya@refinitiv.com 

© Press Release 2020

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.