Mohammed bin Rashid orders the Central Bank of the United Arab Emirates to package new measures to support the economy
Mohammed bin Rashid orders the Central Bank of the United Arab Emirates to package new measures to support the economy

According to the instructions of Sheikh Khalifa bin Zayed, the ruler of the UAE, a few steps ago, the Central Bank of the United Arab Emirates took new executive steps and measures to revive the UAE economy for fear of collapse, after the current crisis caused by the Corona virus and its impact on the economy in the UAE.

On the sidelines of that urgent meeting, the Central Bank of the United Arab Emirates took these villages in order to support the economy of the UAE, the purpose of which is to help banks, finance and finance leasing companies to overcome the repercussions of the crisis on the UAE economy.

And according to what was monitored by “Al-Nasr newspaper” from a publication issued by the Central Bank in the Emirates that was circulated on social media, the UAE Central Bank decided to take a package of incentive measures as follows:

1 - The UAE Central Bank requested all UAE banks to refrain from selling or implementing collateralized pledges against loans and financing operations offered to clients, and this decision is excluded in the event that the request for disposal is submitted by the customer in the Emirates.

2- First, reduce the basic interest rate in the UAE and the discount rate by a quarter of a percentage point to 2.5% from 2.75% to boost growth in the UAE economy.

3- The average interest rate in the UAE for this issue reached 2.5 percent, compared to 2.75 percent for the previous issue.

4- All UAE banks are currently obliged to respond to all requests to postpone the payment of interest and interest / profits of loans affected by the repercussions of the current situation in the UAE, especially small and medium enterprises, and that period is six months with immediate effect and not to affect its credit rating.

5- Reducing overnight deposits from 2.00% to 1.50% in all UAE banks, and the interest rate for one month deposits from 2.45% to 2.20%.

6- Lending facilities at 4.00% for all clients in the Emirates.

7- All loans related to financing government projects in the UAE for the year 2020 CE are permitted from the credit rating, for a period of up to six months, in accordance with the instructions provided by the UAE Central Bank in the circulars previously issued in that regard.

8- Generally consider reducing the fees imposed at the present time on all banking services in the Emirates and not adding any new fees during the current year 2020 AD until further notice.

9- Reducing the interest rate in the Emirates on government treasury bill deductions by 100 basis points to one percent.

10- Reducing the interest rate in the UAE on foreign exchange swaps by fifty basis points, and raising the maximum period for currency swap operations to six months.