The Minister of State for Financial Affairs, Obaid bin Humaid Al Tayer, stressed the importance of the economic measures package recently taken by the UAE Central Bank to support the banking sector, which is the first in the region, as it includes more than 8 million bank accounts, noting that the government is following It monitors the results and effects of the decisions of the Central Bank to support banks, in the coming weeks, to know the economically affected groups that need the necessary support and deal with them.
In response to a parliamentary question about the economic effects of the Corona virus on individuals, during the Federal National Council meeting on Tuesday evening - Al Tayer said: “With the beginning of the emergence of the economic effects of the emerging corona virus worldwide, the UAE Central Bank adopted, on the fourteenth of March The past, a comprehensive economic support plan worth 100 billion dirhams in an effort to support the national economy. "
The minister added: "After a period of not more than 3 weeks has passed, and as a result of the continued monitoring of the economic repercussions of the virus, the total value of the economic support plan has been raised to 256 billion dirhams, consisting of 50 billion dirhams in the form of reductions in preventive capital, and 50 billion dirhams in a support body Financing at zero cost, 95 billion dirhams in the form of cuts in reserve liquidity, and 61 billion dirhams a reduction in mandatory cash reserve requirements. "
The Minister pointed out that the first time was announced to reduce the requirements of the mandatory reserve for demand deposits by 50%, noting that the bank’s board of directors also approved reducing the proportion of the mandatory reserve of demand deposits by half for all banks, as it was reduced from 14% to 7% with the aim of Strengthening liquidity and pumping an estimated 61 billion dirhams of liquidity into the banking sector, which can be used to support bank lending to the sectors of the national economy, and to manage their liquidity.
He continued: "The Central Bank also extended the schedule of the comprehensive economic support plan directed to support the affected customers and companies, and approved additional improvements to the plan,
which enabled the banks and financing companies participating in the targeted comprehensive economic support plan, to extend the period of debt delay and interest on payments due until December 31. 2020 ".
Al Tayer said that banks can also participate in the targeted comprehensive economic support plan, and extend cuts in protective capital until December 31, 2021, where the value of cuts in liberated preventive capital amounts to 50 billion dirhams.
He emphasized that the Central Bank also approved an extension of the zero-cost financing facilities covered by a guarantee for the banks and financing companies participating in the plan, until December 31, 2020, where the value of the available zero facilities is 50 billion dirhams.

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