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UAE banks have used more than 60 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 Central Bank of the UAE (CBUAE) through banks to eligible customers who wish to apply for a deferment.
Banks have used an equivalent of 30 billion dirhams of the allocated funds, the CBUAE said in a statement.
Those eligible customers impacted by the effects of the pandemic will not be required to pay their respective bank any installments, consisting of principal and/or interest/profit, for the agreed deferment period.
“In our efforts to protect impacted individuals and ensure continuous operations of private corporates and SMEs; the CBUAE constantly directs banks and finance companies to implement regulations and guidelines issued within TESS programme,” the statement said.
“This will ensure banks’ effective, full utilisation and swift response for the benefit of the affected customers,” the statement added.
On April 19, the CBUAE said that banks had already utilised over 30 percent of the allocated funds from the TESS facility and are actively passing on these funds to their customers affected by the COVID-19 pandemic.
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)
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