UAE Central Bank Unveils AED 6.2 Billion Financial Relief Initiative

Post by : Bianca Suleiman

In a significant move to bolster the stability of the nation's financial system, the Central Bank of the UAE (CBUAE) has unveiled the results of its extensive support initiative.

The total assistance under this package amounts to AED 6.2 billion, featuring loan deferments, interest alleviation, and waivers for service fees affecting individuals and business sectors.

A total of 65,379 beneficiaries across the UAE have gained from this initiative, which encompasses over 60,000 individuals, 4,335 small to medium-sized enterprises (SMEs), and 485 corporate entities.

The CBUAE prioritized support to sectors that faced acute economic challenges, providing aid to 173 hospitality firms, 361 transport companies, and 134 entertainment enterprises under this initiative.

Moreover, the central bank reported an upward trend in the UAE's banking sector between March 1 and May 1. During this timeframe, banking assets increased by 2.1 percent, loans surged by 3.2 percent, and deposits climbed by 1.9 percent.

Additionally, the monetary base cover ratio stood at 115.3 percent, indicating solid stability within the banking infrastructure.

To facilitate access to resources, eligible businesses and individuals can now defer loan repayments for up to six months without incurring default classifications. This support package also encompasses the suspension of interest and banking fees, while ensuring continued credit access for targeted sectors.

The CBUAE emphasized that this assistance program remains available for corporate organizations, SMEs, and individuals facing economic disruptions, with no set minimum loan amount necessary for qualification.