ABU DHABI 17 May 2020: The Central Bank of the UAE (CBUAE), has issued notice that requires all banks and finance companies to consider the specific circumstances of impacted borrowers to receive a deferral of repayment within the Targeted Economic Support Scheme (TESS).
The options for granting deferrals include the following:
- Deferment of principal only,
- Deferment of both interest/profits and principal repayment, or
- Deferment of interest/profits only
The notice highlighted that the most in-demand option will be for the deferment of both interest/profits and principal repayment, unless the borrower’s circumstances allows for accepting other options.
To date, 77 percent is already drawn-down from the Dh50 billion liquidity facility within TESS, equivalent to Dh38.5 billion of allocated funds, said Wam.
CBUAE welcomes initiatives taken by banks to support and relieve their impacted customers without drawing against the TESS programme which is available to them.
The CBUAE also urges banks to draw-drown the allocated funding and support the economy.