UAE - Mubasher: The overall liquidity of the UAE banking system returned to the pre-coronavirus (COVID-19) level, the Governor of the Central Bank of the UAE (CBUAE), Saeed Alahmadi, said.
This announcement was made during the first quarterly meeting with the CEOs of the UAE's largest banks, according to a press release on Monday.
The meeting highlighted how the Targeted Economic Support Scheme (TESS) has tackled the COVID-19 economic repercussions.
The UAE banks’ drawdown of the dedicated TESS zero-cost liquidity facility decreased to AED 22 billion in March 2021 from the maximum drawdown of about AED 44 billion in the second quarter (Q2) of 2020.
Since its launch, the TESS programme has enabled over 320,000 customers, including individuals, small to medium-size enterprises, and other private companies, to tackle the COVID-19 impact.
Alahmadi said that the UAE economy is projected to recover in 2021, with a 2.5% rise in the real gross domestic product (GDP).
The Governor of the CBUAE further remarked: "The introduction of the stimulus package came at a critical juncture and ensured that banks were able to mitigate funding and liquidity pressures and maintain their lending capacity."
It is noteworthy to mention that in November, the CBUAE extended the applicability period of the TESS zero-cost liquidity facility and the TESS loan deferral and recovery programme until 30 June 2021.
