The legendary Greek-Russian conductor Teodor Currentzis, who is all set to perform at the Dubai Opera next week, on music transcending cultural and language barriers
The banking sector is the lynchpin of the financial system of a country. A robust, healthy banking sector is a must for a thriving economy. When crises such as natural calamities and pandemic occur, it is banks which first come under stress due to a slowdown in economic activities. It is the central bank, a regulator and a banker of bankers, which needs to come to the rescue of the stressed financial system. The Central Bank of UAE (CBUAE) has risen to the occasion and started supporting the banking system through the Targeted Economic Support Scheme (Tess) ever since the coronavirus pandemic broke out in the early months of 2020.
As the pandemic kept pummelling the economies of the world for nearly two years now, the CBUAE kept extending its measures taken under Tess. The latest extension given on Saturday will keep most of the Tess measures in place until June-end of 2022. Though there has been an uptick in economic activities in the recent months, businesses are yet to fully come out of the pandemic-induced stress on their finances. The CBUAE move is well-timed and needs to be appreciated.
What do the CBUAE measures entail? How does it help the banks and the economy? The banks are required to fulfil certain liquidity requirements under the central bank regulations. Those norms have been partially waived so that more money is available for banks to finance businesses. Cheap funding, sometimes at zero per cent, helped mitigate problems of several businesses hit by the pandemic.
The UAE extended economic stimulus worth Dh388 billion to mitigate the effects of the pandemic on economy. It also includes Dh50 billion under Tess to boost the liquidity of the financial sector. Targeted economic measures helped many businesses to stay afloat. Khaled Balama, Governor of the Central Bank of UAE, rightly observed: “The Tess programme has proven its effectiveness in supporting the UAE financial system and economy throughout the pandemic.”
The CBUAE played a stellar role in the recent economic recover. The economy has bounced back to almost pre-pandemic levels thanks to timely measures undertaken by both the Central Bank and the government.
According to latest estimates by the CBUAE, the economy is expected to grow at 2.1 per cent in 2021 and 4.2 per cent in 2022. This is nothing but miraculous after the contraction of the economy in 2020. The banking system, aided by the CBUAE, lived up to the expectations and propped up several businesses which would have otherwise gone bust. The UAE economy is back on rails and speeding ahead. All is well that ends well.
The legendary Greek-Russian conductor Teodor Currentzis, who is all set to perform at the Dubai Opera next week, on music transcending cultural and language barriers
Not every kid is meant to go to university or college. So, it makes sense to teach them entrepreneurial skills early
Some hotels quote Dh1,000 to Dh8,000 for standard hotel room that would usually start at around Dh345 per night
When feeling stuck in life, it's important to revise your thinking patterns
A guide on the channels to report complaints about violations at your workplace
The standout performances came from Arwa Saleh, Mohammed Al-Dhahouri and Amna Al-Loughani on the Taekwondo mat
The story of a non-resident Bangladeshi family establishing and running the famed perfume company Al Haramain and its successful subsidiaries
Matches will be played on an exclusive Saturday with no Premier League fixtures taking place on the same day