The UAE Central Bank urged lenders to support the private sector and individual borrowers to cushion the impact of Covid-19, and disbursed Dh10 billion worth of zero interest loans to banks from the Targeted Economic Support Scheme launched last month.
"We urge banks and financial institutions to act in the best interest of retail clients, private sector corporates and SMEs, which are the growth engine of our economy," governor Abdulhamid Saeed said on Sunday after his first meeting with chief executives of banks operating in the country since his appointment.
In addition to disbursing Dh10bn of the Dh50bn made available to lenders under TESS, the Central Bank also provided more than Dh61bn in the form of lowered cash reserve requirements that are to be used to support companies and customers adversely affected by the pandemic.
The aggregate value of all capital and liquidity measures adopted by the regulator under TESS amounts to Dh256bn.
The coronavirus outbreak is the biggest challenge to the global economy since the 2008 financial crisis and has brought the world economy to a halt.
It has rattled investors and wiped out about $17 trillion (Dh62.4tn) from stock markets worldwide.
Global equity markets are now valued at $72.16tn, from a high of $89tn earlier this year, according to Bloomberg data.
The Central Bank said it will be reaching out to the banks in the coming days to review "how they plan to serve the objectives of TESS and help their customers to cope with the consequences of Covid-19 pandemic".
Mr Saeed "stressed the importance of banks' steadfast commitment to making active use of TESS and utilising the scheme to the full extent for the benefit of corporates, individuals and the economy in general".
The governor said the breadth and depth of banks' participation in the programme will be a fundamental factor in its success "as we aim to cushion the economic impact of the pandemic on companies as well as individuals".
He urged banks that have yet to take part in the programme "to do so at the earliest, to protect our economy".
“I am confident that the scheme will act as a catalyst to strengthen economic activity and effectively mitigate financial risk, while also ensuring that the businesses are prepared for the post-Covid-19 era,” Mr Saeed said.
More than 1.8 million people have been infected globally by the virus and more than 114,000 have died, according to Johns Hopkins University, which is tracking the outbreak. Over 430,000 patients have recovered so far.
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A fruit vendor with his watermelons at the Abu Dhabi Fruits and Vegetables Market during the Coronavirus epidemic. Victor Besa / The National -
Abu Dhabi Civil Defence and Police sterilisation drive in Mussafah. Victor Besa / The National -
A vegetable vendor fixes his gloves at the Abu Dhabi Fruits and Vegetables Market during the Coronavirus epidemic. Victor Besa / The National -
A key worker wears a facemask as he walks passed a brightly coloured mural in Media City, Dubai. Chris Whiteoak / The National -
A deserted part of JBR, Dubai. Chris Whiteoak / The National -
A digger does some work on an empty Jumeirah beach, this is normally a very popular spot for beach goers, Dubai. Chris Whiteoak / The National -
Abu Dhabi Civil Defence and Police sterilisation drive in Mussafah. Victor Besa / The National -
A poster on Sheikh Zayed Road shows a family wearing facemasks tell people to Stay at home, Dubai. Chris Whiteoak / The National -
A man walks past fishing boats in Ajman wearing a mask amid the coronavirus crisis. Chris Whiteoak / The National -
A market worker boxes up fish at Ras Al Khaimah's dock. Antonie Robertson / The National -
Empty streets in RAK as residents stay home for a third week. Antonie Robertson / The National -
Residents of the Northern Emirates must stay home from 8pm to 6am, but can leave home to shop for essentials outside of those times. Antonie Robertson / The National -
A sign outside Dubai Parks and Resorts offers support to frontline workers. Chris Whiteoak / The National -
No entry signs at the closed Corniche in Abu Dhabi. Victor Besa / The National -
A street cleaner sanitises gutters at Marina Mall car park in Abu Dhabi. Victor Besa / The National -
The normally busy beaches of Abu Dhabi have been deserted in recent weeks. Victor Besa / The National -
A shopper picks up essentials at Carrefour in Dubai's Ibn Battuta Mall. Dubai residents must apply for a permit to leave home. Chris Whiteoak / The National -
The only vehicles on Dubai's roads are delivery trucks, bike couriers and minibuses taking essential personnel to and from work. Victor Besa / The National -
The empty Al Maktoum Road near Deira Clock Tower in Dubai. It would normally be one of the city's busiest streets. Pawan Singh / The National -
A 24-hour stay-home order and the disinfecting of streets has left Dubai streets mostly deserted. Pawan Singh / The National -
The famous Deira Clock Tower at the heart of the city's old town. Pawan Singh / The National -
The bridge to Meydan hotel and racecourse stands empty on Saturday evening. Reem Mohammed / The National -
A shopkeeper waits outside his dress store in Al Ain. Chris Whiteoak / The National -
An ambulance on a street in Al Ain. Chris Whiteoak / The National -
A quiet street leads to Sheikh Khalifa bin Zayed Grand mosque in Al Ain. Chris Whiteoak / The National -
The empty bridge to Meydan during daytime. Reem Mohammed / The National -
Dubai residents must remain indoors at all times, unless they have a permit for essential shopping. Reem Mohammed / The National -
Residents queue outside a supermarket in the Muraqqabat area of Deira in Dubai. Pawan Singh / The National -
A customer enters a pharmacy in Dubai. Pharmacies and supermarkets are the only stores allowed to remain open to the public. Pawan Singh / The National -
A man rides his bike across the street in Al Ain. Chris Whiteoak / The National -
A medical worker in a booth prepares to swab residents at a drive-through test centre in the Dubai suburb of Khawaneej. AFP -
Dubai skyline during lockdown. Antonie Robertson / The National -
A man takes a taxi after leaving the Business Bay Metro station, Dubai. Antonie Robertson / The National -
An awareness board on Meydan road, Dubai. Antonie Robertson / The National -
The empty Kite Beach area of Dubai. Antonie Robertson / The National -
A healthcare worker crosses an empty street in Bur Dubai while wearing a mask amid the coronavirus outbreak. Chris Whiteoak / The National -
A gentleman crosses an empty street in Oud Metha in Dubai. Chris Whiteoak / The National -
Men in face mask walking by nurseries in Warsan. Reem Mohammed / The National
The International Monetary Fund said the global economy is now in a recession as a result of the outbreak.
It is projected to contract more than 1.5 per cent this year, according to some estimates, and the IMF expects economic recovery to begin next year.
The pandemic has forced governments to shut borders, disrupted trade and brought travel and tourism to a halt. About 75m tourism sector jobs are at risk worldwide.
Governments worldwide have aunched stimulus packages worth more than $8tn to support their economies as unemployment surges due to lockdowns and restrictions on movement.
About 17 million Americans have lost their jobs in the past three weeks.
