Covid-19: Abu Dhabi Fund suspends debt repayment for beneficiary countries, companies

The Abu Dhabi Fund for Development (ADFD) has decided to suspend debt service repayments for 2020 for eligible countries, as well as individual businesses, in the developing world “upon request for forbearance”, it said in a statement on its website on Sunday.

It noted that payment of instalments and interests that covers the period from January 1 to December 31, 2020 will be implemented by ADFD in accordance with the national law and internal procedures.

In a major initiative, @ABUDHABI_FUND has announced suspension of debt repayments for a year for eligible countries, as well as individual businesses, in the developing world, upon request for forbearance…. pic.twitter.com/6c4B8WK2lF

— صندوق أبوظبي للتنمية (@ABUDHABI_FUND) July 12, 2020

“At a time when the world is reeling under the effect of the pandemic that has affected every area – from economy and society to health and education – it is imperative for us to support particularly those that need it most, especially the low-income countries,” said Mohammed Saif Al Suwaidi, director general of the ADFD.

“The initiative is so crucial to ensure their financial stability and that they steadily follow the path to growth and sustainable economic development.”

The decision, ADFD said, is aligned with the UAE Government’s goals to support the G20 plan, launched by the World Bank, to help developing countries meet their financing needs and alleviate their debt burdens during this Covid-19 pandemic.

ADFD’s primary role is to provide concessionary loans to national companies, as well as to the governments of developing countries, to help grow key sectors such as education, health, energy, transport, housing, agriculture and industry.

“After all, relieving the financial burden on the developing economies as well as that of our own country is our moral obligation,” said Al Suwaidi.

Here in the UAE, on May 31, it pledged Dhs1bn in concessionary loans for national companies across the industrial, health and food security sectors so that they can continue to operate through the crisis.

#ADFD pledges AED 1 Billion contributing to support #UAE #national_companies operating in crucial sectors and in #industry, #health, #food_security. Whose economic and commercial activity has been affected by the #Covid_19 pandemic. pic.twitter.com/F8Vj040KfP

— صندوق أبوظبي للتنمية (@ABUDHABI_FUND) May 31, 2020

Additionally, in May, ADFD also announced a Dhs36.7bn ($10bn) support fund, committed by institutions within the Arab Coordination Group, to provide technical assistance, grants, concessional loans, financing, trade insurance and capacity development programmes.

“We are committed to taking any further action and providing support that may be required to ensure a swift recovery of the beneficiary countries and our national companies,” added Al Suwaidi.