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Thu 18 Jun 2020 10:34 AM

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

Central Bank's Targeted Economic Support Scheme helps individuals, SMEs and other private businesses impacted by Covid-19

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

More than 140,000 eligible customers have already benefited from the TESS liquidity facility.

Banks in the UAE have availed of AED44bn ($12bn) worth of interest-free loans, providing support to more than 140,000 customers across the country.

The AED50bn ($13.6bn) Targeted Economic Support Scheme (TESS) was launched by the Central Bank of the UAE (CBUAE) in March to help individuals, SMEs and other private businesses impacted by the current coronavirus crisis.

At a video conference meeting of the board of directors of the CBUAE it was revealed that 88 percent of the liquidity facility had been availed by 26 banks in total, with 17 banks drawing down 100 percent.

The package of support was launched as part of an AED100bn ($27.2bn) scheme, which included the AED50bn ($13.6bn) liquidity relief tool through banks to eligible customers who wish to apply for a deferment until December 31.

More than 140,000 eligible customers have already benefited from the TESS liquidity facility. The board also reviewed details of support provided to customers outside of the TESS liquidity facility, where over 180,000 customers have benefited, with a total deferral value of around AED8bn ($2.2bn).

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