The Governor of the Central Bank of the UAE (CBUAE), Abdulhamid Saeed, held his first meeting with CEOs of banks operating in the country to emphasize the systemic significance of extending support to private sector companies and individuals affected by COVID-19 as part of the Targeted Economic Support Scheme (TESS).The meeting comes as part of its ongoing mandate to safeguard financial stability in the UAE.
"It is encouraging to see that banks operating in the UAE are drawing upon the Targeted Economic Support Scheme to support the liquidity needs of their customers, as we aim to cushion the economic impact of the pandemic on companies as well as individuals," said Saeed.
He added: “We urge banks and financial institutions to act in the best interest of retail clients, private sector corporates and SMEs (small and medium enterprises), which are the growth engine of our economy.” The governor urged banks that had not yet confirmed their participation in the scheme to do so at the earliest.
A number of CEOs shared the progress of their utilization of TESS to date and their targeted outreach program to support their customers affected by COVID-19; including individuals, private corporate customers, and micro, small and medium enterprises (MSMEs).
The governor hosted an in-depth discussion of the measures implemented under the TESS and stressed the importance of banks’ commitment to making active use of the TESS and utilizing the scheme to the full extent, for the benefit of corporate, individuals and the economy in general.
Since the launch of the support scheme on March 14, the central bank has provided AED10 billion (USD2.7 billion) to banks in the form of zero interest funding and over AED61 billion (USD16.6 billion) in the form of lowered cash reserve requirements, it said in a statement late on Sunday.
