(MENAFN- Khaleej Times) The UAE Central Bank on Saturday said banks can defer both interest/profit and principal repayment under the stimulus programme offered to them to extend support to customers impacted by Coronavirus.
The regulator further explained that all banks and financial should consider the specific circumstances of the impacted borrower to receive a deferral of repayment within the Targeted Economic Support Scheme (Tess) as options for granting deferrals. These include deferment of principal only, deferment of both interest/profits and principal repayment, and deferment of interest/profit only.
As expected, most of the impacted customers will seek both deferment of interest/profit and principal repayment, unless the borrower's circumstances allows for accepting other options, the Central Bank said in a statement issued on Saturday.
It urged all banks to draw-drown the allocated funding and support the economy.
The Central Bank had doubled the size of its stimulus package from Dh126 billion to Dh256 billion in April and allowed banks and finance companies to extend deferrals of principal and interest payments to their customers until December 31, 2020.
The funds consisted of Dh50 billion capital buffer relief banks, Dh50 billion funds available at zero cost to extend finance, Dh95 billion to ensure that there is enough liquidity in the market and Dh61 billion reduction of cash reserve requirements.
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