Yesterday, the Central Bank confirmed that banks are making progress to support dealers affected by the consequences of the outbreak of the new Corona virus (Covid 19).
The Central Bank indicated that the banks withdrew about 77% of the liquidity facilities amounting to 50 billion dirhams, which is equivalent to 38.5 billion dirhams from the financing granted to them, within the framework of the comprehensive economic support plan.
He added that to motivate banks and finance companies to withdraw more liquidity facilities granted by the central bank at zero cost for use for the benefit of private sector companies, small and medium-sized enterprises and individuals who were negatively affected by the repercussions of the "Covid-19" epidemic, the central bank issued a notice that includes additional clarifications of requests for deferred payment, Under the economic support plan, pointing out that the notice aims to facilitate the implementation of the support plan.
According to the notice, banks and finance companies must consider the specific circumstances of the affected borrowers to obtain a request to postpone payment within the economic support plan, as the options for granting postponements include: postponing the amount of the loan principal only, or postponing the payment of interest / profits and the amount of the loan principal Together, the interest / profits are only postponed.
The notice indicated that the most requested option would be to postpone the payment of the “interest / profits” and the amount of the principal of the loan together, unless the borrower's circumstances allowed the acceptance of other options.
The Central Bank welcomed the initiatives taken by some banks to support the affected clients, without any withdrawals from the general program available to them.
The Central Bank has published a list of banks that have used more than 50% of the liquidity facilities of the support plan, which aims to protect and support dealers affected in these exceptional circumstances, urging banks to withdraw the funding granted to them and contribute to supporting the national economy.
According to the list, the banks used: “Abu Dhabi Commercial”, “First Abu Dhabi”, “Emirates NBD”, “Dubai Islamic”, “Emirates Islamic”, “Noor Bank”, “National Fujairah”, “Commercial International”, “Sharjah ”And“ Investment ”is 100% of the liquidity facilities, while the Arab Bank for Investment and Foreign Trade used 93%, the Arab Bank 76%, the Mashreq Bank 73%,“ Sharjah Islamic Bank ”67%, and“ Ras Al-Khaimah National ”58% , And "Umm Al Quwain National" 58%, and "United Arab" 57%.
100%
Among the liquidity facilities used by 10 banks to support the economy.