(MENAFN- Live Mint) The UAE's Defaulted Debts Settlement Fund has waived debts amounting to more than AED 475.154 million for 1,435 Emirati citizens, in cooperation with 19 banks and financial institutions, ANI reported.

The move aligns with the directives of President His Highness Sheikh Mohamed bin Zayed Al Nahyan and is overseen by His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, and Chairman of the Presidential Court.

Why did the UAE government waive off debt?

The initiative highlighted the leadership's aim to alleviate the financial burdens of citizens and promote their well-being, support family stability and contribute to wider social development. It seeks to lessen the living pressures on those in default and help them regain financial stability, the report said.

The exemptions include humanitarian and medical cases, low-income borrowers, the deceased, low-income retirees, and senior citizens.

Debt settlements with banks are executed in accordance with strict legal and regulatory standards concerning the nature and purpose of each loan, prioritising essential and necessary expenses.

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The list of participants in this initiative includes 19 banks and entities such as Abu Dhabi Commercial Bank Group, Emirates NBD, First Abu Dhabi Bank, Abu Dhabi Islamic Bank, Mashreq Bank, RAKBANK, Sharjah Islamic Bank, Dubai Islamic Bank, e&, United Arab Bank, Arab Bank for Investment & Foreign Trade (Al Masraf), Commercial Bank of Dubai, HSBC, Ajman Bank, Amlak Finance, Emirates Islamic Bank, Standard Chartered Bank, National Bank of Umm Al Qaiwain and Citibank.

UAE National Day

The announcement comes days ahead of the UAE National Day, which will be observed on December 2. UAE National Day, also known as Eid Al Etihad, commemorates the unification of the emirates under a single flag in 1971. It aims to bring together communities and generations, and celebrate UAE's history.

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This public holiday marks the formation of the UAE, a union of seven emirates including Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al-Quwain, Fujairah, and Ras Al Khaimah. It holds historical importance as the day the UAE was founded as a sovereign, independent country, allowing each emirate to retain its unique identity.

During the celebrations, the UAE national flag, adorned in red, green, white, and black, is hoisted and fluttered in the air, while families come together for festive gatherings, enjoying feasts that feature delicious dishes such as the national favourite, khuzi, a combination of roasted lamb served on spicy rice.

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