Some banks are not easing loan payments, FNC member says

FNC member to ask central bank governor why some banks are harassing customers

Amember of the Federal National Council (FNC) will today put a question to Abdul Hamid Saeed, Central Bank Governor, on why some banks have failed to provide Covid-19 relief packages, including delaying loan instalments.

“Many citizens have complained that their banks refused to postpone their loan instalments, which is unacceptable, particularly as the central bank announced stimulus worth tens of billions of dirhams that included aid to the banking system,” Hamad Al Rahoumi, First Deputy Speaker of the House, told Gulf News.

The UAE Central Bank last month doubled to $70 billion a stimulus package to support the economy amid the pandemic. In March, the UAE announced a stimulus worth $35 billion that included aid to the banking system, facilities for loans and injecting of funds into the bourses.

Social responsibility

Al Rahoumi said he will demand a clarification on why some banks failed to assume their social responsibility towards citizens and residents when most of the new measures focused on easing financial and liquidity requirements for banks to free up cash for lending.

In the new measures, the central bank reduced by half to 7 per cent the reserves

Many citizens have complained that their banks refused to postpone their loan instalments, which is unacceptable.”

Hamad Al Rahoumi | FNC Member and First Deputy Speaker banks are required to keep for demand deposits, which can be withdrawn by clients anytime. This will allow for some $16.6 billion in liquidity to be used in new bank lending, the central bank said.

Al Rahoumi added the regulator’s new measures also allow banks to defer payment of loans for companies and clients until the end of 2020.

“The central bank’s measures should effectively enable banks to offer required relief and funding for households whose income are heavily impacted,” the member said.

The House will also discuss a draft law on public health.

Marwan Obaid Ali Al Muhairi, a member from Ajman, will put a question to Obaid Huamid Al Tayer, Minister of State for Financial Affairs, on the role of the Al Etihad Credit Bureau in verifying financial liabilities of individuals and businesses, locally and internationally.