UAE banks draw down $12bn in interest-free loans

UAE

UAE Banks have benefited from interest-free loans of 44 billion dirhams (12 billion dollars), providing support to more than 140,000 customers across the country.

The Target Economic Support Program (TESS) worth 50 billion dirhams ($ 13.6 billion) was launched in March to help individuals, small and medium-sized companies, and other private companies affected by the current coronavirus crisis.

In a video conference meeting of the Central Bank’s board of directors, it was revealed that 88% of the liquidity facility benefited 26 banks in total, with 17 banks 100%.

The support package was launched as part of a 100 billion dirham ($ 27.2 billion) plan, which included a 50 billion dirham ($ 13.6 billion) liquidity relief tool through UAE banks for eligible clients who wish to apply for a delay until December 31.

Over 140,000 eligible clients have already benefited from the TESS liquidity facility. The Board also reviewed the details of the support provided to customers outside the TESS liquidity facility, as more than 180,000 clients benefited, with a total value of approximately 8 billion dirhams ($ 2.2 billion).