The Governor of the Central Bank, Abdul Hamid Saeed, discussed, during a recent meeting with the chief executives of banks, the progress of the banks' implementation of a comprehensive economic support plan directed to support individuals and private sector companies, and small and medium-sized enterprises affected by the repercussions of the "Covid 19" epidemic.

The “Central Bank” revealed detailed regulations related to the postponement of loan installments for those affected by the repercussions of the “Covid-19” epidemic, and a decision to reduce the amount of the first payment made to the property buyer to facilitate the purchase of real estate. And not to impose a minimum balance for the account of traders from small and medium enterprises exceeding 10 thousand dirhams.


Detailed systems

The Central Bank said in a statement yesterday that, as part of its tasks to preserve consumer protection, it worked to develop detailed and comprehensive regulations for the economic support plan, which included urging banks to complete the largest number of transactions for individuals, private sector companies and small and medium-sized enterprises affected in their practical activity by the consequences of an epidemic. Covid-19 ».

The Central Bank stressed that banks must maintain sound lending standards and treat all dealers fairly.

He pointed out that during the validity period of the support program that runs until the end of 2020, the banks must postpone the installments and interest for the loans of the clients affected by the consequences of the epidemic of "Covid-19" from individuals, private sector companies, and small and medium enterprises.


Postponement of installments

According to the "Central", the support plan includes liquidity facilities amounting to 50 billion dirhams granted by the Central Bank of Banks, so that qualified dealers can postpone their installments according to their request.

He stressed that these eligible dealers, who are affected by the repercussions of the epidemic, will not have to pay any of the installments, including the principal of the debt, interest or profits for the entire period of postponement agreed upon during the support plan period. However, the customer bears the payment of interest or profits due during the delay period on the principal, at a later date in agreement with the bank. Banks should not impose interest or profits on interest or deferred profits during the period of the support plan.


Small businesses

In accordance with the regulations it established, the Central Bank obliges all banks to open accounts for SME customers within a maximum period of two days, provided that the risks are acceptable in light of the obligations to counter money laundering and combat the financing of terrorism.

Banks also should not impose a minimum balance for the account of traders from small and medium-sized enterprises in excess of 10 thousand dirhams, so that the institutions can continue to conduct their commercial activities in the state.
The Central Bank also took a decision to reduce the amount of the down payment made to the property buyer, to facilitate the purchase of real estate.


Speed ​​up the support plan

"The banks used more than 30% of the financing granted to them within the facilities of the comprehensive economic support plan directed to provide the necessary support to customers affected by the repercussions of the epidemic (Covid-19)," said the central bank governor, Abdul Hamid Saeed.

Saeed stressed the continuation of communication with all banks and finance companies, to accelerate the use of the support plan, pointing out that this matter requires continuous cooperation and intensification of the efforts of all banks to implement economic stimulus packages that are in the interest of the banking sector and the national economy.


National economy

The Central Bank stressed that the facilities of the support plan will contribute to strengthening the national economy, with a total value of 256 billion dirhams for all measures taken by the central bank related to capital and liquidity.

The Central Bank expects banks to fully participate in the support plan that will work effectively to reduce the effects of the consequences of the Covid-19 epidemic on the local economy and provide all necessary means for the financial sector to enable it to finance activities and other economic sectors.

The Central Bank confirmed that it will begin announcing the details of each bank in using the facilities of the support plan as of May 2020.