The overall liquidity of the banking system returns to pre-pandemic levels

Al-Markazi: 320 thousand dealers benefited from the subsidy plan

  • The Central Bank extended the period for implementing liquidity facilities and the loan deferral program until June 30.

    Photography: Eric Arazas

  • Abdul Hamid Saeed: "The launch of the stimulus package came to ensure the banks' ability to alleviate funding and liquidity pressures."

picture

The Central Bank of the UAE confirmed the positive results achieved by the subsidy plan on the banking sector in the UAE, and the economy in general.

He added, during the first meeting of 2021 with the CEOs of the largest banks in the country, that the launch of the stimulus package came at an ideal time, to ensure the banks' ability to alleviate financing and liquidity pressures.

Since its launch, more than 320,000 bank customers, including individuals, institutions, and private companies have benefited from the subsidy plan, while the number of bank customers who have deferred loans is about 175,000.

The governor of the Central Bank and the chief executive officers of the banks confirmed that the total liquidity of the UAE banking system has returned to levels before the Covid-19 pandemic.

Support plan

In detail, the Governor of the UAE Central Bank, Abdul Hamid Muhammad Saeed Al-Ahmadi, chaired its first meeting for the year 2021 with the chief executives of the largest operating banks in the UAE.

A statement issued yesterday stated that the meeting's agenda focused on discussing the effectiveness of the targeted comprehensive economic support plan in limiting the repercussions of the "Covid-19" pandemic.

The governor of the Central Bank discussed, with the chief executive officers of the banks, issues of influence in the banking sector, including the strategy of switching from interbank interest rates (EIBOR) to reference interest rates, and the role of the banking system in supporting the recovery of the national economy during the post-Covid-era phase. 19 ».

Positive results

The governor of the UAE Central Bank said: “We are pleased to see the positive results achieved by the subsidy plan on the banking sector in the UAE, and the economy in general,” stressing that the launch of the stimulus package came at an ideal time, to ensure the banks' ability to alleviate financing and liquidity pressures, and to preserve their ability to lend. .

He added, "Together, we were able to pave the way for a strong recovery of the UAE economy from the repercussions of the (Covid-19) pandemic, at a time when expectations indicate that the country's economy will recover in 2021, and that the real GDP will rise by 2.5%," stressing that the bank will continue In closely monitoring market and economic developments in the UAE and around the world.

The governor of the Central Bank and the executive heads of the banks confirmed that the total liquidity of the UAE banking system has returned to levels before the “Covid-19” pandemic, while bank withdrawals from the zero-cost liquidity facilities provided by the comprehensive economic support plan amounted to about 22 billion dirhams per year. March 2021, down from the maximum withdrawal limit of about 44 billion dirhams, in the second quarter of 2020, in line with the payment deferment program.

Beneficial dealers

The statement pointed out that, since its launch, more than 320,000 banking customers, including individuals, small and medium enterprises, and private companies have benefited from the subsidy plan, at a time when the current number of bank customers with deferred loans is about 175,000.

The targeted comprehensive economic support plan is considered a comprehensive program that covers all measures taken by the Central Bank to confront the effects of the "Covid-19" pandemic.

In November 2020, the Central Bank announced the extension of the implementation period for zero-cost liquidity facilities and the loan deferral program within the framework of the support plan, until June 30, 2021, in addition to the other major measures that will continue to be adopted during 2021.

- The number of bank customers who have deferred loans is about 175,000.

Follow our latest local and sports news, and the latest political and economic developments via Google news