Stimulus measures: UAE Central Bank begins to gradually contain COVID-19 stimulus measures

The bank launched a targeted economic support program (TESS) to help banks provide temporary relief to companies and individuals affected by the crisis, and to improve lending capacity by alleviating existing capital and liquidity buffers.

It said in a statement: “In view of the gradual increase in economic activity, CBUAE is beginning to withdraw its gradual and carefully adjusted target economic support plan to avoid restrictions on credit supply and economic growth.”

It says 15% UAE The bank’s loan portfolio benefited from the loan extension plan as part of the plan.

The bank will not lower the bank deposit reserve ratio and the loan-to-value ratio applicable to first-home mortgage loans.

It said it is considering extending regulatory relief measures beyond the end of this year, allowing banks to maintain a lower capital and liquidity buffer based on the pace of economic recovery and loan demand.

The UAE’s central bank said earlier this week that the UAE’s economy is expected to grow by 2.1% this year and 4.2% in 2022, supported by a recovery in global travel, domestic and foreign demand, and successful vaccination campaigns.