UAE Central Bank announces debt relief until December 31

UAE Central Bank announces debt relief until December 31

The UAE Central Bank on Sunday allowed banks and finance companies to extend deferrals of principal and interest payments to their customers until December 31, 2020.On March 15, the Central Bank had announced Dh100 billion stimulus package that allowed banks to grant temporary relief on retail and business clients' loans payments for up to six months.. The regulator also took another major step on Sunday, halving the reserve requirement for demand deposit of all banks from 14 per cent to seven per cent in order to increase liquidity in the banking sector and mitigate the impact of the Covid-19 coronavirus.. The step will release Dh61 billion additional liquidity for the banking sector.. For banks and finance companies participating in the Tess programme, the apex bank has extended the zero-cost funding facility of Dh50 billion against collateral until December 31, 2020.This will allow banks participating in the Tess programme to use a third of their current regulatory liquidity buffers.. Banks will have the flexibility to maintain a minimum loan-to-capital (LCR) of 70 per cent and a minimum ELAR of seven per cent.. The overall release of regulatory liquidity buffers is estimated at Dh95 billion.. Guidelines have also been issued for banks