CBUAE remains committed to supporting UAE’s recovery
ABU DHABI, 20th April, 2021 (WAM) The Central bank of the UAE (CBUAE) has extended integral parts of its Targeted Economic Support Scheme (TESS) until mid-2022.
Financial institutions will continue to be eligible to access the collateralised AED50 billion zero-cost liquidity facility up to 30th June, 2022, to provide new loans and financing to individuals, small and medium-sized enterprises, and other private corporates affected by Covid-19 repercussions.
CBUAE’s financing for loan deferrals under the TESS will also be extended until the end of 2021. The outstanding financing for the TESS deferrals shall be fully phased out by 31st December 2021.
UAE Central Bank extends stimulus package till mid 2022
Waheed Abbas/Dubai
Move to overcome economic repercussions of Covid-19 pandemic.
The Central Bank of the UAE (CBUAE) on Tuesday extended integral parts of its Targeted Economic Support Scheme (Tess) until mid-2022 to help individuals and private sector companies overcome the impact of the Covid-19 pandemic.
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The regulator said financial institutions would continue to be eligible to access the collateralised Dh50 billion zero-cost liquidity facility up to June 30, 2022, to provide new loans and financing to individuals, small and medium-sized enterprises, and other private corporate entities affected by Covid-19 repercussions.
The CBUAE’s financing for loan deferrals under the stimulus package will also be extended until the end of this financial year. The outstanding financing for the Tess deferrals shall be fully phased out by December 31, 2021.
DUBAI: The COVID-19 pandemic, lower oil prices, and continued pressure on the real estate sector have increased risks for UAE banks, S&P Global Ratings said in a report on Sunday.
It expects the sector’s problem loans to increase further once current regulatory forbearance measures are lifted and banks start to account for the impact of the economic shock. However the process is expected to be gradual, minimizing the overall impact.
After the pandemic started, the UAE Central Bank (CBUAE) implemented a Targeted Economic Support Scheme (TESS), which helped ease the pressure on corporate issuers and small and mid-size enterprises, S&P said. But it did not reduce credit risk on the banking system’s balance sheet.
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