UAE Central Bank asks lenders to support virus-hit firms

The Central Bank of the UAE has urged lenders to review their business continuity plans as it established a committee to assess and identify solutions to mitigate any impact of the coronavirus on the country’s economy.

Financial institutions are expected to implement measures such as the “rescheduling of loans contracts, granting temporary deferrals on monthly loan payments as well as reducing fees and commissions” for customers affected by the virus, the central bank said yesterday.

UAE banks remain well-capitalised and are in a good position to support customers affected by the virus, without “jeopardising their own safety and soundness”, the Central bank said.

The Emirates reported a total of 21 cases of the coronavirus yesterday as the outbreak continued to spread across the globe. The World Health

Organisation has raised the alarm on the virus to “very high” from “high” but stopped short of calling the outbreak a pandemic.

The virus has migrated from its source in China’s Hubei province, with scores of new cases being reported in countries such as South Korea, Italy and Iran. The global death toll from the virus has topped 2,900 with the number of confirmed infection cases worldwide surpassing 84,000.

“The CBUAE continues to closely monitor the situation, and, if necessary, will provide additional guidance,” the regulator said.

Central banks around the world are acknowledging the risks posed by the virus, which has disrupted supply lines and trade, leading to a rout in oil prices and stocks.

Oil prices and global stocks slumped to their worst week since 2008 as the virus spread to more than 40 countries.

The S&P 500 in the US fell 11.5 per cent last week.