UAE banks returned AED14.47 bn received from Central Bank’s AED50 bn TESS

UAE national banks have returned around AED14.47 billion from the stimulus they had received since March 2020 from the Central Bank of the United Arab Emirates (CBUAE) to deal with the COVID-19 impact, statistics by the CBUAE have shown.

The move is reflective of the robust solvency profile of the UAE national banks and the sufficient funds they have to handle their business in the best possible manner.

An AED100 bn targeted economic support scheme (TESS) initiative was launched by the CBUAE in March 2020 to support the UAE’s economy during the COVID-19 pandemic, which consisted of zero-interest, collateralised loans worth AED50 bn for local banks and an additional AED50 bn freed up from banks’ capital buffers.

According to the terms of TESS, participating banks can use the funding to offer temporary relief to private sector and retail customers for a period of up to six months. The scheme also aims to ease principal and interest payments on outstanding loans.