How the UAE Central Bank’s Dh100bn stimulus package will help SMEs – The National

How the UAE Central Bank’s Dh100bn stimulus package will help SMEs – The National

UBF chairman Abdulaziz Al Ghurair says local banking sector is 'well-positioned' to provide support to businesses. The Central Bank of the UAE's Dh100 billion economic stimulus package rolled out on Saturday to offset the impact of the coronavirus pandemic will help small and medium businesses that are likely to be among the hardest hit, banking representatives and experts said.. The package will "give a significant boost to the UAE banking sector and have [a] far-reaching impact on various sectors that underpin the economy", said Abdulaziz Al Ghurair, chairman of the UAE Banks Federation (UBF).. "The UAE banking sector has sufficient liquidity and is adequately capitalised and we are well-positioned to weather challenges that lie ahead," he said.. The Targeted Economic Support Scheme includes Dh50bn from central bank funds through collateralised loans at zero cost to all banks operating in the UAE and Dh50bn of funds freed from banks' capital buffers.. The package includes measures that will help facilitate access to finance for SMEs, reducing fees and removing hurdles to opening business bank accounts.. The central bank has reduced the amount of capital banks have to hold for their loans to SMEs by 15 to 25 per cent, thereby