Coronavirus: UAE banks use 75% of funds offered to help extend relief to customers

Abu Dhabi - Dh37.2 billion have been withdrawn from the fund to extend relief.

The UAE Central Bank on Thursday said the number of banks taking part in the stimulus package have increased to 24 as they have utilised 75 per cent of liquidity offered to them to help their customers.
Out of Dh50 billion offered to the UAE banks at zero cost to extend finance to their customers, Dh37.2 billion have been withdrawn from the fund to extend relief to bank customers.
The regulator said more customers are now taking advantage from the stimulus package, which provides financial relief to those affected by the repercussions of the Covid-19 pandemic.
The Central Bank had doubled the size of its stimulus package on April 5 to Dh256 billion and allowed banks and finance companies in the country to extend deferrals of principal and interest payments to their customers until December 31, 2020.
It had made Dh50 billion available as capital buffer for banks, Dh50 billion funds at zero cost to extend finance to banks' individual and business customers, Dh95 billion to ensure that there is enough liquidity in the market and Dh61 billion reduction of cash reserve.
"During the past two weeks, additional banks have joined the scheme, increasing the total number of banks participating in the Targeted Economic Support Scheme to 24. This increase reflects the commitment of the banking sector to further ease the financial burden of affected customers," it said on Thursday.
waheedabbas@khaleejtimes.com

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