The dirham is pegged to the dollar .. This is a fixed fact, and since the United States reduced the interest rate to 0.25%, that is, a quarter of a percent, the central bank followed it to reduce the price to approximately 0.75%, and the UAE government intervened strongly to put at the disposal of banks nearly 100 billion dirhams, and from Without interest, in order to mitigate the negative repercussions of the "corona" crisis on the banking sector, and to reduce the cost of financing for borrowers, due to the closure of economic and commercial activities.

But what happened? The interest on interbank lending, or what is known as “eibor”, fell to its lowest levels, after the recent reduction in the main interest rate on certificates of deposit, which implied that the cost of obtaining funds for banks, in turn, decreased, with rates ranging between 11 and 48 basis points, According to the latest data issued by the «Central».

However, the banks did not reduce interest by the same rates for clients, and interest levels continued as they were before the reduction of the Federal Reserve and the UAE Central Bank, and some even raised the price of personal finance, on the pretext that there are risks in lending to individuals currently, due to the implications of the Corona virus, and the subsequent impact of some Employment sectors, and the price became between 3 and 4.5%.

Unfortunately ... instead of lowering the interest rate, the banks resorted to increasing it, and often did so to compensate for their recent losses from NMC's exposure, while claiming that if the interest rate was reduced by the same rates behind the "central", it would suffer a loss, as there is a minimum It cannot be relinquished, to ensure that costs are covered, and to ensure that a profit margin is achieved, but this claim applies only to small clients. As for adults like Shetty, they have different transactions, in which all the rules and instructions are broken!

Bitter truth .. that despite the provision of great support from the government and the central bank to banks, no bank has yet applied to withdraw from zero facilities, despite the lapse of nearly a month since the launch of the plan, and the announcement of its implementation mechanism by the central bank!

We have exceptional circumstances that require quick decisions, procedures that suit the position of companies and the market, and lack of strictness in the conditions, especially for national companies whose owners will not leave with them billions of banks. Unfortunately, we have not seen these procedures, decisions and facilities from banks, and the only financing that has witnessed a reduction is real estate financing, and is starting to From 2.75% ؜ due to declining demand for it, and the construction of housing starts now, mainly this sector is witnessing a slowdown even before the crisis, while the important thing now is to support the affected individuals and commercial companies.

From a second angle, and regarding the new on the "NMC" issue, banks now require the companies registered with them that deal with them, to disclose the existence of any transactions with the company from suppliers and others. One of the bank officials says that "their number is in the hundreds", and here it will appear We have a problem that is greater than the problem of banks, will affect local companies, and portend negative consequences. The company is the largest operator of the health sector in the state, and it must be preserved and help it to rise and stability, in order to protect the small companies that dealt with it, from suppliers and small service providers, because these companies are many in number. , Not listed, and you will not find legal protection, like that T is available for companies and banks to contribute to the public, so it has to be quick government intervention, even if through an alliance bank, according to the government's stakes in each bank, to prevent bankruptcy and closure of these small and medium-sized local companies.

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