The Central Bank is extending the period of implementing the comprehensive support plan until June 2021
The Central Bank of the United Arab Emirates announced the extension of the period of implementation of the main elements of the economic stimulus package that it launched under the name of the targeted comprehensive economic support plan, until the end of June of 2021.
It should be noted that the Central Bank had launched this plan during March 2020 with the aim of supporting the UAE economy in general to face the repercussions of the "Covid-19" pandemic through an integrated set of support measures for the banking sector related to financing, liquidity, lending and capital.
As part of this initiative, the Central Bank will extend the period of application of the zero-cost facilities amounting to 50 billion dirhams, which benefit both corporate and individual bank customers and facilitate the management of liquidity at banks through guaranteed financing at zero cost, for an additional 6 months.
Accordingly, banks and financing companies participating in the plan will be able, starting from January 1, 2021, to grant new loans and facilities to their customers affected by the repercussions of the epidemic, within the terms and conditions applied and specified in the criteria for the targeted comprehensive economic support plan.
The Governor of the Central Bank of the United Arab Emirates, Abdul Hamid Muhammad Saeed Al-Ahmadi, said: “The Central Bank affirms its commitment to support the financial system of the UAE and take the necessary measures to accelerate the recovery of the economy from the repercussions of the Covid-19 epidemic, and the extension of the period of implementation of the comprehensive economic support plan aimed at providing support to customers "The banks are companies, small and medium enterprises and individuals. We are confident that this initiative comes to protect the economy from the impact of the epidemic and puts us in an ideal position to recover once the epidemic is completely eliminated."
The targeted comprehensive economic support plan launched by the Central Bank has succeeded in enhancing the ability of the financial system to support individuals and companies affected by the repercussions of the "Covid-19" pandemic.
To date, more than 310,000 individual clients, about 10,000 small and medium enterprises, and more than 1,500 private sector companies have benefited from the loan forgiveness program included in the support plan.
The Central Bank also announced the gradual implementation of the remaining parts of the Basel III compliance project, to be done in three phases, starting from the second quarter of 2021 until the second quarter of 2022, as part of its commitment to implementing international regulatory standards in the UAE.
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