Wed 23-09-2020 20:19 PM
ABU DHABI, 23th September, 2020 (WAM) -- A total of AED44.72 bn of the AED50 billion liquidity facility provided by the Central Bank of the United Arab Emirates (CBUAE) to the UAE banking sector as part of the Targeted Economic Support Scheme(TESS) has been drawn down by UAE lenders until the end of July, figures released by the CBUAE have shown.
On March 15, CBUAE announced an AED100 bn stimulus package as a counter-measure to address the COVID-19 in the country. TESS includes AED50 bn of zero-interest, collateralised loans for UAE-based banks. It also entails AED50bn funds freed up from banks’ capital buffers. Participating banks should use the funding to offer temporary relief to private sector and retail customers for a period of up to 6 months. The scheme also aims to ease principal and interest payments on outstanding loans.
According to the statistics, a total of AED44.38 bn has been drawn down until end June, AED42.33 bn until end of May and AED31.85 bn by the end of April.
Up to 26 banks have availed the TESS with the number of beneficiaries amounting to more than 140,000, including individuals and corporates.