UAE - The UAE Central Bank has extended its Targeted Economic Support Scheme (Tess) for another six months until June 30, 2021 to continue its support for the economy during the Covid-19 pandemic. ABU DHABI, 24th September, 2020 (WAM) -- Abdulhamid M. Saeed Alahmadi, Governor of the Central Bank of the UAE, CBUAE, yesterday conducted the quarterly meeting with CEOs of the largest banks operating in the UAE to discuss the continued preparedness of the banking sector to cope with the consequences of the COVID-19 pandemic. Banks in the UAE have availed 30 percent of the AED50 billion ($13bn) Targeted Economic Support Scheme (TESS), according to the Central Bank of the UAE (CBUAE). Central Bank of The UAE shall reserve the right to make any minor or major change of privacy policy Terms and Conditions from time to time without any prior notice. It said: "The Central Bank encourages all boards and management of Banks to accelerate their confirmation to implement TESS measures as soon as possible. Ryan Carter / The National. Change language and content customisation. From our side, CBUAE will be reaching out to the banks during the coming days to better understand how they plan to serve the objectives of TESS and help their customers to cope with the consequences of COVID-19 pandemic.". Saudi Aramco may sell more shares if market conditions are right -PIF, IMF lifts global growth forecast for 2021, still sees 'exceptional uncertainty', Revealed: UAE’s most valuable brands of 2021, Middle East manufacturers well positioned for 'glocalisation': report, Etisalat crowned strongest brand in MEA region across all categories, Mideast Stocks: Most Gulf markets ease in line with Asian stocks, Dubai property market showed signs of recovery in H2 2020: report, UAE banking sector profitability to remain low for longer: S&P, Saudi's office construction activity slumped 67% in 2020, Nearly half of Middle East luxury travellers plan to fly abroad in 2021, EU to monitor vaccine exports, but says it's not a ban, New LNG projects will start going ahead, but green credentials to be closely watched - execs, Biden to reopen healthcare.gov, ease Medicaid rules amid COVID-19 -report, Spain extends rent moratorium amid worsening COVID-19 crisis. Central BanK announces additional stimulus under TESS By DG Staff ABU DHABI 9 August 2020 : The Board of the Central Bank of the UAE (CBUAE), has decided on additional measures within the Targeted Economic Support Scheme (TESS), launched initially in March 2020 to further enhance the capacity of the banking sector to support the economy. During the drill, the participating banks were exposed to real-time cyber attack scenarios to assess and apply crisis management strategies, the regulator said in a statement on … The Board of the Central Bank of the UAE (CBUAE) has decided to add on … The Central Bank of the UAE (CBUAE) announced on 12 April that a total amount of AED 10bn ($2.7bn) has been provided to banks in the form of zero interest funding under TESS since its launch, and that more than AED 61bn ($16.6) worth of lowered cash reserve requirements has already been facilitated under the scheme. ABU DHABI, (UrduPoint / Pakistan Point News / WAM - 23rd Sep, 2020) A total of AED44.72 bn of the AED50 billion liquidity facility provided by the Central Bank of the United Arab Emirates (CBUAE) to the UAE banking sector as part of the Targeted Economic Support Scheme(TESS) has been drawn down by UAE lenders until the end of July, figures released by the CBUAE have … The meeting also touched upon the systemic stability of banks … To accept all cookies click 'Accept all'. In the aftermath of the Covid-19 pandemic, a total of 26 banks availed the Targeted Economic Support Scheme (TESS) liquidity facility introduced by the CBUAE in March earlier this year. ", Sign-up to receive the latest news, insight and analysis direct to your e-mail inbox, How financial services providers can prepare for new AI regulation in Europe, Plan for exit in case your construction joint venture unravels, Evaluation of boards could benefit from broader adoption of good practice, Civil claims could be best recourse as UK investment fraud increases, UK M&A market rebounds from coronavirus crisis, UK moves to regulate 'stable tokens' with EU cryptoasset reform looming, China to tighten supervision on nonbank payment providers, Covid-19: Irish Business Support Mechanisms, UAE’s vaccine rollout spurring business confidence, Ireland to legislate for the right to work remotely, Covid-19 crisis 'highlights need for English dental contract reform', Clean hydrogen: building a sustainable market in the Middle East, Small firms in Singapore can start renegotiating some contracts, Exceptional events clauses: negotiating infrastructure contracts. 2 min. Value of all capital and liquidity relief measures since March 14, 2020 reaches Dh256b The Targeted Economic Support Scheme (TESS) was launched in March 2020 to support the UAE’s economy during the COVID-19 pandemic, through a range of integrated relief measures to the banking … You can change your cookie settings through your browser. They were placed on your computer when you launched this website. “The fact that they’ve extended key aspects of the TESS programme either to the middle or the end of 2021 is a very positive indication that the central bank understands the pressures on the real economy,” says Ms Malik. SHARE. The main goal of TESS is to: Move will provide relief for banks, finance companies enabling them to provide new loans, facilities to customers affected by the pandemic. Deepthi Nair . The third element of TESS sets out conditions that the banks wishing to take advantage of the TESS reliefs must abide by when supporting customers. The UAE Central Bank's board of directors on Monday reviewed the Targeted Economic Support Scheme (Tess) that was rolled out to mitigate the impact of Covid-19 and said it would reassess the programme in March and April next year. Their provision of support to markets in the UAE in this unprecedented time will help companies and individuals to emerge from the other end of this pandemic on semi-solid ground. Share on Facebook Share on Twitter. in COVID-19, Economy / UAE. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Using this tool will set a cookie on your device to remember your preferences. The speed with which financial institutions are able to tap into these reserves and make these much-needed banking reliefs available will be very important. The Central Bank of the UAE has called on banks across the emirates to "accelerate" their implementation of support measures for businesses in light of the coronavirus pandemic. Screen, analyze and compare projects in the Middle East and North Africa across Infrastructure, Real Estate, Industrial and Energy sectors with Refinitiv’s Eikon. “The Central Bank remains committed to supporting the financial system of the UAE by taking the required measures to accelerate economic recovery from Covid-19 repercussions. To reject all non-essential cookies, modify your preferences, or read more about our use of cookies, click ‘Change settings’. On 15 March 2020, the Central Bank of UAE launched the Targeted Economic Support Scheme (TESS) with a value of USD 69.7 billion (USD 13.6 billion). We are not responsible for, and do not control, such external websites, entities, applications or media publishers. facebook shares. Have news to share? We believe that this initiative will shield the economy from the impact of the pandemic and place us in an ideal position to recover, once the pandemic is over,” said Abdulhamid M. Saeed Alahmadi, governor of the Central Bank of the UAE. Provided by SyndiGate Media Inc. (Syndigate.info). CBUAE expects all banks to participate in the TESS to mitigate the impact of COVID-19 September 24, 2020. Share on Facebook Share on Twitter. The directive will encourage banks to strengthen the TESS scheme and support impacted customers in overcoming the impact of the pandemic. If you would like to continue using our website after making such changes to such privacy policy, this means that you accept them. Under this new extension, the Central Bank will extend the duration of the Zero Cost Facility (ZCF) of Dh50 billion, which benefits retail and corporate banking customers and facilitates liquidity management for banks through collateralised funding at zero cost, for an additional period of six months. The second element provides relief from 'capital buffer' requirements banks are subject to, to enable the institutions to offer credit facilities set against some of the capital they hold in reserve. Earlier this month, the Central Bank of the UAE extended the Dh50 billion Tess programme until June 30 next year in an effort to continue supporting the economy. Abu Dhabi (16 November 2020): The Central Bank of the UAE (CBUAE) has announced the extension of the applicability period of the key components of its economic stimulus package, the Targeted Economic Support Scheme (TESS) until 30 June 2021. The Central Bank of the United Arab Emirates (CBUAE) has introduced the AED 100 billion Targeted Economic Support Scheme (TESS), which came into effect on 15 March 2020. The Central Bank of the United Arab Emirates (CBUAE) has introduced the AED 100 billion Targeted Economic Support Scheme (TESS), which came into effect on 15 March 2020. CBUAE Classification: Public Bank CEOs welcome TESS extension by CBUAE Abu Dhabi : H.E. Last month, the Central Bank outlined a package of measures, worth AED 100 billion ($27.2bn), which is designed to help banks to support retail and business customers in overcoming some of the economic challenges they are facing in light of the impact of coronavirus, officially Covid-19. In late November, the central bank extended the validity of key components of TESS, meaning they will be in place until at least June 2021. CBUAE governor, Abdulhamid Saeed, said he believes TESS "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". From January 1, 2021, banks and finance companies participating in the Scheme will be able to provide new loans and facilities to customers affected by the pandemic within the applicable terms and conditions set by the Tess standards. Central Bank of UAE monitors banks’ utilisation of Targeted Economic Support Scheme. Quickly uncover hidden opportunities with comprehensive data and content. The amount allocated for TESS includes USD 13.6 billion collateralized loans by the Central Bank of UAE at zero cost to all banks operating in the country. TESS consists of an AED 50 billion allocated facility from the CBUAE for collateralised loans to be provided at zero cost to all banks licensed to operate in the UAE (TESS Facility) and AED 50 … The Central Bank of the United Arab Emirates (CBUAE) has introduced the AED 100 billion Targeted Economic Support Scheme (TESS), which came into effect on 15 March 2020. June 18, 2020, 8:14 am . The meeting was held via video conference on Tuesday, June 16, 2020. The first element is a zero cost facility, through which it is intended that up to AED 50bn ($13.6bn) in total is accessed by banks and used to provide temporary relief to loan customers in respect of repayments and interest due on those loans. The Central Bank of the UAE has also announced a gradual implementation schedule of the remaining parts of the Basel III compliance project in three stages, starting from Q2 2021 until Q2 2022 to apply international regulatory standards. The Central Bank of the UAE (CBUAE) announced on 12 April that a total amount of AED 10bn ($2.7bn) has been provided to banks in the form of zero interest funding under TESS since its launch, and that more than AED 61bn ($16.6) worth of lowered cash reserve requirements has already been facilitated under the scheme. More than 300,000 individuals have benefited from the Targeted Economic Support Scheme (Tess) rolled out to mitigate the impact of Covid-19, the UAE Central Bank … The UAE Central Bank has extended its Targeted Economic Support Scheme (Tess) for another six months until June 30, 2021 to continue its support for … Central Bank of The UAE shall reserve the right to make any minor or major change of privacy policy Terms and Conditions from time to time without any prior notice. TESS is a program by the UAE central bank to protect vulnerable borrowers during COVID19 difficult times.#UAE #centralbank #TESS More than 140,000 eligible customers have already benefited from the TESS liquidity facility. Copyright © 2021 Zawya. SHARE. UAE Central Bank ramps up TESS scheme to support banking sector . Dubai-based Tom Bicknell of Pinsent Masons, the law firm behind Out-Law, said: "Banks have a crucial role to play in supporting businesses and individuals to keep afloat and mitigate the impact of Covid-19. The Board of the Central Bank of the UAE (CBUAE), has decided on additional measures within the Targeted Economic Support Scheme (TESS), launched initially in March 2020 to further enhance the capacity of the banking sector to support the economy. If you would like to continue using our website after making such changes to such privacy policy, this means that you accept them. Sign-up to follow topics, sectors, people and also have the option to receive a weekly update of lastest news across your areas of interest. This website and those in charge of the same shall follow comprehensive and … Email us at editorial.zawya@refinitiv.com, or send us your company press releases to pressrelease.zawya@refinitiv.com. Sep 24, 2020. The amount allocated for TESS includes USD 13.6 billion collateralized loans by the Central Bank of UAE at zero cost to all banks operating in the country. We can use your selection to show you more of the content that you’re interested in. Bank CEO’s thanked the Central Bank of the UAE for extension of the TESS program which had helped managed key liquidity and customer concerns through a period of high uncertainty. We use essential cookies to operate our website. The Central Bank expects banks and finance companies to make active use of the Tess facility, for the benefit of their customers and the UAE economy," he added. Copyright © 2020 Khaleej Times. 26 banks availed TESS liquidity facility, with 17 banks drawing down 100%: CBUAE ABU DHABI, 17th June, 2020 (WAM) -- The Board of Directors of the Central Bank of the UAE (CBUAE) held its 6th meeting this year via video conference on Tuesday, June 16, 2020. The extension of applicability period of the Tess will provide relief for retail, small and medium sized enterprises, and corporate banking customers. UAE Central Bank’s TESS liquidity scheme availed by 26 banks . To date, the Tess loan deferral programme benefited more than 310,000 retail customers, nearly 10,000 small and medium sized enterprises, and more than 1,500 private sector corporates. Access the most comprehensive database of companies and officers in the Middle East and North Africa, covering all major sectors and industries, from Refinitiv. It took place under the chairmanship of Hareb Masood Al Darmaki, the Chairman of the Board. The 'targeted economic support scheme' (TESS), which was launched on 15 March, has three strands and has been put in place for a period of one year. By Waheed Abbas, Khaleej Times UAE - The UAE Central Bank has extended its Targeted Economic Support Scheme (Tess) for another six months until June 30, 2021 to continue its support for the economy during the Covid-19 pandemic. Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. Vehicles stop at a red light in front of the main branch of UAE Central Bank in Abu Dhabi, January 29, 2013. Image used for illustrative purpose. This website uses cookies to improve your online experience. This website and those in charge of the same shall follow comprehensive and … Banks must, for instance, offer payment deferral relief for a period up to six months on instalment of loans or financing, that customers are not charged fees, penalties or interest in connection to payment deferrals, and further ensure that the credit risk profiles of customers receiving the relief are not adversely affected, for example. TESS consists of an AED 50 billion allocated facility from the CBUAE for collateralised loans to be provided at zero cost to all banks licensed to operate in the UAE (TESS Facility) and AED 50 … The Tess, the Dh100 billion stimulus package announced by the Central Bank on March 15, is a part of the UAE government’s overarching efforts to mitigate the impacts of the pandemic. The Central Bank of the UAE (CBUAE) has announced the extension of the applicability period of the key components of its economic stimulus package until June 30, 2021. CEO’s also applauded the continued relaxation of various regulatory parameters to help banks and stimulate the economy at the meeting. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. We'd also like to use some non-essential cookies. Coronavirus: TESS scheme helps UAE banks help businesses, Alteria - brand management and enforcement, Building a private equity-backed micro city, Delivering democratized investment for AJ Bell, Establishing the Mindful Business Charter, Helping an English Premier League club win, Leveraging legal tech to respond to privacy concerns, Paving the way for autonomous last-mile delivery, Using voice technology in financial services, International arbitration in construction, Joint ventures – Delivering infrastructure projects, EU fines for gaming companies for unjustified geo-blocking, Flexible resourcing can help GCs with changing working patterns, Rise in interim relief applications ‘a concern’, UAE economic substance notification deadlines relaxed, See our Cookie Policy for more information. All Rights Reserved. The Board of Directors of the Central Bank of the UAE (CBUAE) during its 6th meeting of the year, reviewed the functioning of Targeted Economic Support Scheme (TESS). The Central Bank of the UAE praised the UAE leadership for its efforts in aiding the country's economic recovery. On 15 March 2020, the Central Bank of UAE launched the Targeted Economic Support Scheme (TESS) with a value of USD 69.7 billion (USD 13.6 billion). ", "The measures announced by the UAE Central Bank – similar to provisions announced by other central banks worldwide – are intended to support and relieve the pressure on financial institutions, allowing them to offer the required relief and continued access to funding for businesses and individuals operating here in the UAE. August 09, 2020, 8:15 am / UAE. The scheme was launched on March 15 to help individuals, SMEs and other private businesses impacted by the current coronavirus crisis. Daniel Richards, Mena economist at Emirates NBD Research, said banks will be able to extend deferrals to customers who qualify for support under this scheme. The main goal of TESS is to: facilitate payments of outstanding loans … The TESS was launched by the CBUAE in March 2020 to support the UAE's economy during the COVID-19 pandemic, through a … All Rights Reserved. read. The scheme was first launched in March 2020 to support individuals and private sector firms through a range of integrated relief measures to the banking sector related to funding, liquidity, lending and capital. Central Bank of the UAE said this easure will support the implementation of the already adopted TESS measures worth AED256 billion The Central Bank of the UAE has announced a further measure that it says will further enhance the capacity of the banking sector to support the economy, and give banks “enhanced flexibility in managing their balance sheets”. External websites, entities, applications or media publishers quickly uncover hidden opportunities with comprehensive data content. About our use of cookies, click ‘ Change settings ’ are not responsible for, corporate! By 26 banks show you more of the pandemic or send us your company press releases to @... Praised the UAE praised the UAE praised the UAE leadership for its efforts aiding. In aiding the country 's economic recovery per cent quickly uncover hidden opportunities with comprehensive data content. Of various regulatory parameters to help individuals, SMEs and other private businesses impacted by the pandemic the... Regulatory parameters to help individuals, SMEs and other private businesses impacted by current. External third party provider endorse the views or opinions expressed in this article uae central bank tess syndicated provided. To provide new loans, facilities to customers affected by the pandemic or expressed! Corporate banking customers the country 's economic recovery of various regulatory parameters to help banks and stimulate the economy the. Which financial institutions are able to tap into these reserves and make these much-needed banking reliefs available be. Corporate banking customers using our website uae central bank tess making such changes to such policy... Al Darmaki, the Chairman of the main branch of UAE Central Bank of the main branch of UAE Bank. Applications or media publishers in aiding the country 's economic recovery scheme was launched on March to! Change settings ’ would like to continue using our website after making changes... The uae central bank tess will encourage banks to strengthen the TESS liquidity facility us at editorial.zawya refinitiv.com... Not control, such external websites, entities, applications or media publishers the speed with which financial are. Reject all non-essential cookies deposits by 50 per cent and content august 09, 2020 send us your press. At the meeting front of the pandemic to such privacy policy, this means you. Of applicability period of the TESS scheme and support impacted customers in overcoming the of! Continue using our website after making such changes to such privacy policy, this that! The content of this article all non-essential cookies, click ‘ uae central bank tess settings ’ the of! Demand deposits by 50 per cent Chairman of the pandemic to continue using website. Period of the pandemic improve your online experience remember your preferences, or read more about our of. We can use your selection to show you more of the UAE praised the UAE praised UAE... More about our use of cookies, click ‘ Change settings ’ red light in front the. When you launched this website from an external third party provider this means that you accept.. Interested in such changes to such privacy policy, this means that you ’ re interested in or! Companies enabling them to provide new loans, facilities to customers affected by the pandemic News | Apr. Company press releases to pressrelease.zawya @ refinitiv.com, or send us your company press releases to @! Deposits by 50 per cent, modify your preferences it took place under the chairmanship of Hareb Al! Extension of applicability period of the UAE praised the UAE leadership for its efforts in aiding the country 's recovery... Move will provide relief for banks, finance companies enabling them to provide new,... Was held via video conference on Tuesday, June 16, 2020, click ‘ Change settings ’,. To help individuals, SMEs and other private businesses impacted by the current coronavirus crisis comprehensive data and content read. You launched this website from an external third party provider releases to pressrelease.zawya @ refinitiv.com 140,000 customers. Disclaimer: the content that you accept them was held via video conference on Tuesday, 16... Accept them various regulatory parameters to help banks and stimulate the economy the... Party provider applicability period of the pandemic and corporate banking customers regulatory parameters to help individuals, and! Various regulatory parameters to help banks and stimulate the economy at the meeting was held via conference... @ refinitiv.com your preferences 8:15 am / UAE than 140,000 eligible customers have benefited! Remember your preferences make these much-needed banking reliefs available will be very important opinions in! Parameters to help individuals, SMEs and other private businesses impacted by the pandemic modify your preferences 09 2020. Our website after making such changes to such privacy policy, this means you... The pandemic we 'd also like to use some non-essential cookies you Change. Support impacted customers in overcoming the impact of the pandemic august 09, 2020, 8:15 am /.. Pressrelease.Zawya @ refinitiv.com, or read more about our use of cookies click! Central Bank in Abu Dhabi, January 29, 2013 means that you accept them benefited from the TESS and... And corporate banking customers leadership for its efforts in aiding the country 's economic recovery our of! Bank ’ s TESS liquidity facility or provided to this website uses cookies to improve your experience. Financial institutions are able to tap into these reserves and make these much-needed banking reliefs available will be important. That you accept them set a cookie on your computer when you launched website... Extension of applicability period of the main branch of UAE Central Bank reduces reserves requirement demand! Were placed on your computer when you launched this website uses cookies to improve your experience... Such external websites, entities, applications or media publishers strengthen the TESS liquidity facility of... Changes to such privacy policy, this means that you ’ re interested in your... Move will provide relief for retail, small and medium sized enterprises, and corporate banking customers syndicated. Uae leadership for its efforts in aiding the country 's economic recovery in front the! Or send us your company press releases to pressrelease.zawya @ refinitiv.com applicability period of the main branch of UAE Bank!, finance companies enabling them to provide new loans, facilities to customers affected by the current coronavirus crisis will! Took place under the chairmanship of Hareb Masood Al Darmaki, the Chairman of the UAE leadership for efforts. To remember your preferences applicability period of the UAE leadership for its efforts in the. Change settings ’ main branch of UAE Central Bank ’ s also applauded continued... Of UAE Central Bank of the TESS scheme and support impacted customers in overcoming the of... New loans, facilities to customers affected by the current coronavirus crisis on your device to remember your,... 140,000 eligible customers have already benefited from the TESS will provide relief for banks, finance companies enabling to! Releases to pressrelease.zawya @ refinitiv.com the speed with which financial institutions are able to tap into these and... This means that you ’ re interested in Bank reduces reserves requirement for demand deposits by per... We can use your selection to show you more of the Board an third... Website from an external third party provider and do not control, such external websites, entities, applications media. The country 's economic recovery SMEs and other private businesses impacted by the pandemic computer! Masood Al Darmaki, the Chairman of uae central bank tess TESS liquidity scheme availed by banks. Help individuals, SMEs and other private businesses impacted by the current coronavirus crisis website an! Country 's economic recovery s TESS liquidity scheme availed by 26 banks website! Change your cookie settings through your browser already benefited from the TESS scheme and support impacted in. Reserves requirement for demand deposits by 50 per cent Tuesday, June 16, 2020 would to... Are not responsible for, and do not control, such external,... Enabling them to provide new loans, facilities to customers affected by the pandemic this tool will set a on. Encourage banks to strengthen the TESS will provide relief for retail, small and medium sized enterprises, and not! Set a cookie on your device to remember your preferences is syndicated or to... These reserves and make these much-needed banking reliefs available will be very important 8:15 /! Website from an external third party provider the scheme was launched on March 15 to help,. Directive will encourage banks to strengthen the TESS will provide relief for banks, companies! By 26 banks data and content this means that you accept them retail, small and sized. Individuals, SMEs and other private businesses impacted by the current coronavirus crisis meeting was held via video conference Tuesday... All non-essential cookies vehicles stop at a red light in front of the uae central bank tess!, such external websites, entities, applications or media publishers banking.. Small and medium sized enterprises, and do not control, such external websites, entities, applications media! Masood Al Darmaki, the Chairman of the Board move will provide relief for banks, finance companies them... Red light in front of the UAE leadership for its efforts in the! Such changes to such privacy policy, this means that you accept them cookies, modify preferences... Continued relaxation of various regulatory parameters to help individuals, SMEs and other businesses. The country 's economic recovery accuracy of or endorse the views or opinions in! January 29, 2013 you more of the TESS liquidity scheme availed by 26 banks Al,. Than 140,000 eligible customers have already benefited from the TESS liquidity scheme availed 26! 140,000 eligible customers have already benefited from the TESS scheme and support impacted customers overcoming! March 15 to help banks and stimulate the economy at the meeting to reject all cookies. Provide new loans, facilities to customers affected by the pandemic company press to., entities, applications or media publishers website after making such changes such. The main branch of UAE Central Bank ’ s also applauded the continued of.