The stimulus package includes offering refinancing, loan repayment deferrals or lower repayments where requiredby Kudakwashe Muzoriwa
The Abu Dhabi Government has unveiled 17 financial relief measures to provide immediate needs of individuals and SMEs and the stimulus package is expected to reduce finance-related costs, facilitate the ease of access to financing and maintain the resilience of the Abu Dhabi economy, according to local newswire, WAM.
First Abu Dhabi Bank, Abu Dhabi Islamic Bank and Abu Dhabi Commercial Bank—in collaboration with Abu Dhabi Department of Finance and the Abu Dhabi Department of Economic Development, launched the stimulus package which is aimed at supporting residents and businesses in the emirate during the current period of economic uncertainty.
Abu Dhabi’s stimulus package includes offering refinancing, loan repayment deferrals or lower repayments where required.
Moreover, to encourage early settlement and refinancing of existing loans, the banks will offer a 50 per cent reduction on associated bank charges as well as interest charges on new loans and credit cards until 30 June 2020.
The seven measures dedicated to SMEs will enable impacted businesses to mobilise their borrowings and savings more efficiently while reducing the financial costs of running their businesses.
Additionally, bank merchant service fees will be reduced by 50 per cent for SMEs with below AED 5 million usage per annum. Abu Dhabi banks will also offer reduction of up to 50 per cent on all banking charges for zero balance accounts.
The minimum average balance requirements on all SME account categories was reduced to up to AED 10,000 per month to provide them with more liquidity.