A supportive government is what keeping all of us intact and ongoing during this global pandemic. A significant example of this statement is a recent order issued by the Central Bank of UAE by introducing AED 100 billion as a Targeted Economic Support Scheme, hereinafter referred to as the Scheme.
The Central Bank under Scheme has clarified that the half of the raised amount will be utilized for collateralized loans to be issued all banks in UAE at zero cost and other half shall be utilized as a Capital buffer relief. The said order was intentionally issued for assisting residents of UAE as the banks will now relieve the corporate and individual clients who are severely impacted by the situation caused COVID-19.
Key Facilities under the Scheme
The Scheme is basically to allow the banks to withdraw funds offered by
the Central Bank with no cost and such funds can be exchanged with the
payments the bank ought to receive from the clients, thereby allowing the
banks to accept delayed payments from their clients.
The Scheme allows the banks to seek loan until 31 December 2020 and
therefore, the banks can further automatically delay the payments from
the clients who are severely affected in COVID-19 situation.
The Scheme imposes an obligation for the bank to submit a collateral to
Central bank whose value is equal or greater than the loan taken from the
Central Bank.
The Scheme obliges the banks to provide an evidence regarding the usage
of loan that is only for deferred payments purposes towards their
clients. However, if the bank fails to provide such evidence to the
Central Bank, the bank would be under an obligation to pay a default rate
of 10% per annum on the borrowed amount.
The Scheme mentions the limitation capacity of the bank to borrow loan
which is directly proportional to the bank shares in lending to the
corporate entities or clients in the market.
The Scheme prohibits the banks to charge any additional interest rate or
fees while allowing deferred payment under the Scheme.
The Scheme allows banks to raise 60% of their capital reservation
buffers, however, the banks which has been designated as domestically
important by Central Bank will be able to use 100% of their capital
buffer.
The capital buffer which offers additional liquidity in the bank is
available until 31 December 2020 as per the Scheme.
The measures presented by Central Bank give banks registered in the UAE the capacity to deferred installments anticipated from their customers that are impacted by the COVID-19 pandemic.
Relying on the statistics, more than half of the facilities offered by the Scheme has been utilized, all things considered, there will keep on being various alterations to existing business offices and rescheduling of installments, as corporates are compelled to work in problematic conditions due to COVID-19.
All our readers shall approach the Legal Consultants of Dubai in order to understand the latest updates in the rules and regulations issued by the government which are being altered on daily basis.
I had the pleasure of consulting with Dr. Hassan AlHais, and I must say the entire experience was exceptional.The reception and meeting area were impeccably clean, quiet, and managed to the highest standards, creating a welcoming and professional atmosphere. View testimonial
Abdullah Client
Verified
I had the pleasure of consulting with Dr. Hassan AlHais, and I must say the entire experience was exceptional.The reception and meeting area were impeccably clean, quiet, and managed to the highest standards, creating a welcoming and professional atmosphere.The customer service was outstanding.. View testimonial
Salam Amir Client
Verified
Dr. Hassan is brilliant. I have been working with him for more than 15 years. His work product and legal advice are of the highest caliber. Competent. Professional. Knowledgeable. Analytical and strategic thinker. Honest. Without exaggerating, Dr. Hassan is the best family litigator in the UAE. Highly recommend.
Abed Awad Client
Verified
I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.
Raphael Lauria Manager, FME General Trading
Verified
Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.
Dr. Massimo Hakim Chairman, Italian Style
Verified
I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.
Manish Gupta CEO, EDS FZE
Verified
Best lawyer in Dubai.
Aigul Beishembieva Client
Verified
Happy with the team of Mr. Hassan Elhais. Knowledgeable on UAE laws and i got the advice i was looking for. Highly recommended!
Mukesh Pandey Client
Verified
Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.
James Horsley British Client
Verified
Their team of attorneys are not only highly knowledgeable and professional but also incredibly attentive to the needs of the client. They will provide you with a top-notch service every step of the way. The staffs are friendly, responsive, and always kept you informed about the progress of your case. I highly recommend this for anyone in need of legal assistance.
May Ann Adrias Client
Verified
...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...
H.H. Sheikh Saeed Bin Mohammed Hashir Al Maktoum
Verified
We are extremely happy to note that you won all three cases which we entrusted to you. Your superb handling ensured the result in our favour. We very much appreciate this and feel grateful to you. You not only won the cases, but managed to get the judgement executed without much delay..View testimonial
Chandru Malkani Client
Verified
Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.
Zhuo Liu Client
Verified
I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.
Luis Pozueco Client
Verified
Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.
Bassam Yamout Director, JM Metal Trading LCC
Verified
Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.
British Client
Verified
Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.
Asma Mattar Manager, Italian Style
Verified
Knowing Dr. Hassan for years now, I can say confidently he is the most trustworthy person I ever met, not only because he is very knowledgeable, smart and has a very high acumen, but also he is very dedicated and buying his clients and interest first..View testimonial
Ahmed Higazy Client
Verified
I have had nothing but exceptional work from Dr. Hassan, all my family and business related legal work goes to him. Having been in and out of Dubai since 2004 and having wasted money on bad legal advice elsewhere, I feel VERY qualified to say that he is absolutely the best in the UAE. Thank you Hassan.
Rich Firth Client
Verified
Dr. Hassan is the best lawyer in UAE I have dealt with, he is very professional and has consistently upheld the highest standards of professional ethics, ensuring that my best interests were always at the forefront. I wholeheartedly recommend Dr. Hassan to anyone..View testimonial
Hossam ElDeeb Client
Verified
Ex UK Senior management now running a busy business in Dubai that requires bulletproof corporate legal contracts that are customised to our unique needs. This includes everything from HR contracts to complex sales agreements. Dr. Hassan has undoubtedly proven to be the best legal expert we have encountered here..View testimonial
