Dubai: The Central Bank of the UAE (CBUAE) has extended its liquidity support to banks, an integral part of its Targeted Economic Support Scheme (TESS) until mid-2022.
“The extension of the TESS shall allow continued support by the financial system to the sectors negatively affected by the pandemic. This is done to support the recovery phase, in line with the CBUAE mandate to ensure financial and monetary stability,” Khaled Mohamed Balama, Governor.
TESS is a comprehensive programme covering all CBUAE measures such as liquidity support to banks, zero cost funding to banks for loan deferrals and regulatory support in response to the COVID-19 pandemic.
Zero cost funding
Financial institutions will continue to be eligible to access the collateralized Dh50 billion zero-cost liquidity facility up to 30 June 2022 to provide new loans and financing to individuals, small and medium-sized enterprises, and other private corporates affected by Covid-19 repercussions.
The extension of the TESS shall allow continued support by the financial system to the sectors negatively affected by the Covid-19 pandemic. This is done to support the recovery phase, in line with the CBUAE mandate to ensure financial and monetary stability.
CBUAE’s financing for loan deferrals under the TESS has been already extended until the end of 2021. The outstanding financing for the TESS deferrals shall be fully phased out by December 31, 2021.
While the pandemic affected the entire economy, both in the UAE and globally, the CBUAE expects financial institutions to prioritise lending through the TESS to the most negatively affected sectors, businesses, and households, contributing to a balanced revival of the UAE’s diversified economy.
