Home Industry Finance UAE Central Bank’s TESS liquidity scheme availed by 26 banks More than 140,000 eligible customers have already benefited from the TESS liquidity facility by Zainab Mansoor June 18, 2020 In the aftermath of the Covid-19 pandemic, a total of 26 banks availed the Targeted Economic Support Scheme (TESS) liquidity facility, with 17 banks drawing down 100 per cent, the board of directors of the Central Bank of the UAE (CBUAE) confirmed. In its sixth meeting this year, the board reviewed the utilisation of the TESS scheme, the progress in the drawdown of the liquidity facility and the deferrals provided by banks to eligible customers. Todate, UAE-based banks availed 88 per cent of the Dhs50bn liquidity facility, equivalent to Dhs44bn of allocated funds. Meanwhile, more than 140,000 eligible customers have already benefited from the TESS liquidity facility. On March 15, the CBUAE announced the Dhs100bn TESS stimulus package, which included Dhs50bn of zero-interest, collateralised loans for UAE-based banks and also Dhs50bn funds freed up from banks’ capital buffers. Read: UAE Central Bank announces Dhs100bn package to counter Covid-19 On April 5, the CBUAE issued further directives to offer relief measures to banks, corporates and individuals within the country. It decided to reduce by half the reserves requirements for demand deposits for all banks from 14 per cent to 7 per cent to inject liquidity of about Dhs61bn, which can be used to support banks’ lending to the UAE economy and help in their liquidity management. The board also reviewed the details of support provided to customers outside of the TESS liquidity facility. More than 180,000 customers have benefited from such backing, with a total deferral value of roughly Dhs8bn. Additionally, reports on the financial system surveillance, resilience of the UAE banking sector to stress, and macro-financial developments were also reviewed. The central bank has projected that economic activity in the country will start to recover in the second half of the year. Also read: UAE Central Bank projects economic recovery in second half of 2020 Tags Economy finance Government News Targeted Economic Support Scheme TESS UAE Central Bank 0 Comments You might also like Moody’s upgrades Saudi Arabia’s rating on economic diversification UAE central bank fosters innovation with new hub at EIF Financial gap to meet SDGs in MEASA hits $5tn annually: NYUAD UAE, Saudi Arabia lead M&A activity in MENA in 2024: EY