Bankers welcome extension of support scheme

Bankers welcome extension of support scheme

The UAE Central Bank's pro-business decision to extend the Dh50 billion Zero-Cost Facility, a key ingredient of its acclaimed Dh100 billion Targeted Economic Support Scheme (Tess), for another six months until June 30, 2021, will have significant positive ramifications in revitalising all sectors of the economy in the impending post-Covid recovery phase, economists and bankers said.

Under the extended facility, banks and finance companies participating in the scheme will be able to provide new loans and facilities to customers affected by the pandemic within the applicable terms and conditions set by the Tess standards from January 1, 2021, analysts said.

“The central bank remains committed to supporting the financial system of the UAE by taking the required measures to accelerate economic recovery from Covid-19 repercussions. The extension of the applicability period of the Tess will provide relief for retail, small and medium sized enterprises, and corporate banking customers,” said Abdulhamid M. Saeed Alahmadi, governor of the central bank of the UAE.

The governor said the initiative would shield the economy from the impact of the pandemic and place the UAE in an ideal position to recover, once the pandemic is over.

Hesham