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UAE banks instructed to reschedule loans, defer monthly loan payments

UAE banks instructed to reschedule loans, defer monthly loan payments

The UAE has, so far, reported 21 cases of coronavirus of whom five have fully recovered

The Central Bank of the UAE (CBUAE) has issued directives to banks across the country to adopt measures to mitigate the effects of the coronavirus infection.

The Central Bank has asked financial institutions to implement measures such as re-scheduling of loans contracts, offering temporary deferrals on monthly loan payments, and reducing fees and commissions for affected customers.

“Financial institutions in the UAE are well-capitalised and are in a good position to support customers that have been affected by coronavirus, without jeopardizing their own safety and soundness,” CBUAE said in a statement.

“To ensure the readiness of UAE’s financial sector for a potential worsening of the situation, CBUAE also advises that all banks and finance companies review and update their business continuity plans,” it added.

Commercial banks in the UAE are categorised into: locally incorporated banks, which are public shareholding companies licensed in accordance with provisions of Union Law No. (10) of 1980; and branches of foreign banks which have obtained Central Bank’s licenses to operate in the country.

The UAE operates 22 national banks and 27 foreign banks as of June 30, 2019, as per CBUAE’s website.

Since the outbreak of the infection in the Chinese city of Wuhan late last year, the UAE has reported 21 coronavirus cases, of whom five have fully recovered.

Read more: Coronavirus update: Number of cases in the UAE total 21, nurseries to be closed from March 1

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