As a component of the economy, banks will offer a "lifeline."
Abdulaziz Al-Ghurair, chairman of the UAE Banks Federation, announced in a media briefing on Tuesday that banks in the UAE are prepared to extend assistance to customers affected by the recent unprecedented rains.
Al-Ghurair emphasized banks' willingness to collaborate with individuals and businesses facing financial difficulties, offering support with mortgages, auto finance, or personal loans. He stressed that banks consider themselves integral to the economy and are committed to providing assistance to customers in need, urging affected parties to approach them for help.
Al-Ghurair also highlighted banks' previous resilience, citing instances of loan rescheduling during the COVID-19 pandemic as examples of their maturity in handling challenges.
On April 16, the UAE experienced the heaviest rainfall in 75 years, leading to the inundation of Dubai International Airport and the subsequent disruption of flight operations, resulting in the cancellation of over 2,000 flights. This event caused significant damage to businesses and individuals across the region.
Responding to the aftermath, on April 22, the Central Bank of the UAE (CBUAE) issued a directive to all banks and insurance companies, instructing them to allow customers affected by the adverse weather conditions to defer repayment of instalments for personal and car loans for a period of six months. The deferral will not incur additional fees, interest, or profits, nor will it increase the principal amount of the loan.
News Source: Khaleej Times
