What is the recently announced Targeted Economic Support
Scheme?
The Central Bank of the UAE (CBUAE) has launched a AED100
billion ($27.2 billion) stimulus scheme to contain the economic
repercussions of the coronavirus outbreak and a subsequent drop in
economic activity in the UAE. This scheme called the "Targeted
Economic Support Scheme" is made up of AED50 billion ($13.6
billion) from CBUAE funds through collateralized loans at zero cost
to all banks operating in the UAE and AED50 billion ($13.6 billion)
of funds freed from banks' capital buffers.
Will this scheme offer any relief to private sector
companies?
The stimulus scheme is part of a comprehensive action plan to
help businesses overcome a potential liquidity and solvency crisis,
at a time when the coronavirus outbreak and the crude oil price
collapse are adversely affecting deposits and lending. The scheme
will provide relief to all private sector companies and retail
customers from the payments of
