The head of the Emirates Banking Association, Abdulaziz Al Ghurair, stressed that "the banking sector in the UAE is strong and has sufficient liquidity."

Al Ghurair described, in a press interview, yesterday, the employees and workers who left their jobs due to the pandemic of the Covid-19 virus as a "treasure" that should not be abandoned or dispensed, stressing that the loss of work in his opinion is temporary, and soon the request will rise. I have to work again during the next four to six months.

Al Ghurair denied that there was a failure by the banking risk departments to verify the merit of the "NMC" health care credit company.

The company «NMC»

In detail, the president of the Emirates Banking Association, Abdulaziz Al Ghurair, denied that there was a failure by the risk departments of banks to ascertain the merit of the "NMC" company for health care credit.

He explained in a press interview, "Remote" yesterday, that the company "NMC" is listed on the London Stock Exchange among the 100 best companies, in what audits budgets and financial data outside the state, pointing out that "the company has dealt with 80 banks and lender destinations in the UAE And outside it ».

Al Ghurair added that «the legal guardianship of the company has now been imposed, in a manner that does not allow any manipulation of the financial statements, or the performance of any illegal matters».

He said: "I do not blame banks or risk departments in them, because they all dealt professionally with an established company and an institution registered in the oldest money market in Britain, and it has strict control from the market, and it has the largest audit company in the world."

He added, "Knowing the company’s budgets, cash flow, and all indicators shows that it is positive, and the banks do not deal with assumptions of fraud and fraud, this is not its role, but the responsibility of other parties and other paths that must decide on the matter."

He pointed out that "NMC" is a transcontinental, and its financial position is good, registered in Britain, and it is difficult for banks in the Emirates to verify all their financial dealings with 70 banks around the world, and this is what the banks that relied on audited financial budgets did, And the good financial position of the company before lending it.

Sufficient liquidity

To that, Al Ghurair stressed that «the banking sector in the UAE is strong, has sufficient liquidity, and does not need any external support», indicating that «banks have additional support and liquidity estimated at 256 billion dirhams, which will be provided to companies affected by the current conditions quickly, taking into account Transparency and conformity of conditions ».

He explained that «additional liquidity can support the banking sector with liquidity for up to four or five years to come», stressing that «banks do not need any benefit from bond or other programs currently».

Support funds

Al Ghurair explained that «what the UAE is witnessing from exceptional circumstances is a challenge that the whole world is going through, but thanks to the support of the leadership, the banking sector got the largest support between the Gulf countries and the region with a value of 256 billion dirhams, and it is now incumbent on banks to accelerate the benefit of companies affected This support, ”noting that“ the support is liquidity that helps banks to grant additional facilities without resorting to increasing their capital. ”

He revealed that "the banks - over the past two weeks - have contacted their clients to find out the extent of their needs," expecting the banks to withdraw 50 billion dirhams of support funds tomorrow. He said: "This support comes to support the continuation of the economic wheel."

He pointed out that the support funds are not donations, but are loans on conditions, and this requires that banks scrutinize the availability of conditions, in addition to a role for the customer himself, which is to reduce unnecessary expenses, and to abandon imaginary projects or exaggerated expansions.

He said that «the banks expect the affected business owners to communicate with their banks to reach the required support, and to deal with all transparency, and not to hide information, or the existence of ambiguity that makes the bank tough in providing facilities, given that the support funds must be returned by the banks».

He stressed that the priorities will be presented to the current affected clients, and all cases will be studied quickly, given the importance of the time factor, but this depends on the cooperation of each customer as well.

Treasure staff

Al Ghurair also stressed that the opportunities are now favorable to adjust the conditions of companies that are unable to continue in the market, and competition in light of changing transactions and the way of performance, the economic situation after "Corona" is completely different from the previous, stressing the importance of good management of institutions and companies.

He stated that «there are expected stumbling blocks for companies and individuals with an average of 1%, during the current and next two years, due to the background of companies laying off employees, or a slowdown in the business sector». He said: "Losing work temporarily, the demand for work will rise again, during the next four to six months, due to the difficulty of bringing in new workers in light of the airport closures."

He described the employees and workers who left their jobs due to the pandemic of the (Covid-19) virus as a "treasure" that should not be abandoned or dispensed with, given the state's need for these employees after a few months.

One trillion dirhams of loans

The president of the Emirates Banking Association, Abdulaziz Al Ghurair, said that "what is happening now is an opportunity for companies to change the way they work and reduce unnecessary expenses", pointing to the success of "remote work" in the banking sector, as well as government agencies.

He added that "the banks estimate the conditions of the dealers who left their work, or took unpaid leave, and give them appropriate delays", pointing to the presence of demand for employment internally after the epidemic receded, due to the difficulty of bringing in workers from abroad during the next four months.

Al Ghurair revealed that «the total loans granted to individuals and the private sector, far from lending to government agencies and semi-governmental companies, amount to about one trillion dirhams, and this was enough for us to grow four or five years ahead», pointing out that the growth rates during the coming period will not be at the previous pace itself, but rather Less.

"There are expected stumbling blocks for companies and individuals, with an average of 1%, in the current and next two years."