The central bank stressed that bank customers who are not eligible for the support program it launched to mitigate the effects of the Corona virus, but facing financial difficulties, can apply to banks or lending finance companies to consider an appropriate option to restructure their loans.
This came in a clarification within the directives sent by the Central Bank to banks and finance companies, and Emirates Today obtained a copy of it.
The Emirates Today received notes from dealers who were financially affected by Corona, but they were unable to present papers proving their right to benefit from the support program.
To that, the banking expert, Awatef Al-Harmoodi, said that it is in the interest of banks to cooperate with dealers who face financial difficulties that may lead them to default on the payment of their obligations, noting that the option of restructuring exists for this category of dealers who were not able to benefit directly from The financial support program provided by the Central Bank, due to a shortage of papers and evidence required by each bank, according to the instructions of the “Central”.
Al-Harmoodi indicated that the affected customer must submit an application to the bank he is dealing with, pointing out that although there is no obligation to agree to his request, the banks take into account the current circumstance related to "Corona", and deal with the matter out of their social responsibility, and the request is often approved.
"What is important in the restructuring is for the bank to cover its costs and achieve even a small margin of profit in exchange for extending the payment period and reducing the monthly installment, whether it is for an individual or for a company," she added.
Al-Harmoodi pointed out that the banks will not collect their money if they do not help the defaulted individuals and companies, considering that obtaining half of the installments a month is better than nothing. It is noteworthy that the "Central" requires banks and financing companies to ask the clients for evidence proving that they are directly or indirectly affected by the repercussions of the Corona epidemic, in order to qualify for support program assistance.
It is also required to avoid using the support plan to help the current dealers who are not affected by the repercussions of the epidemic and the non-resident dealers, as well as the dealers who failed to fulfill their obligations before the epidemic period.
Al Markazi stressed that avoiding using the support plan to help unaffected clients.