Emirates News Agency – UAE Press: Extension of stimulus measures will ensure strong and sustained recovery

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ABU DHABI, December 19, 2021 (WAM) – A UAE newspaper said the country’s economy rebounded convincingly faster than expected after the impact of the pandemic thanks to numerous measures to defeat the virus and stimulate economic recovery, including an effective vaccination campaign.

One of the successful measures is the Targeted Economic Support Program (TESS), introduced by the Central Bank of the United Arab Emirates (CBUAE) at the height of the coronavirus outbreak last year, to help banks provide temporary aid to businesses and individuals affected by the pandemic; and facilitates additional lending capacity through relief from existing capital and liquidity buffers, ”Gulf News said in an op-ed Sunday.

“These measures have helped create a stable and confident economic environment which has enabled the UAE to recover faster than most countries in the world. The country has been bursting with economic activity since the third quarter of last year, Expo 2020 being the culmination of these activities, “the newspaper said in its editorial.

And as the recovery gathered pace, the CBUAE expanded its stimulus package, replacing measures it put in place earlier to minimize the immediate impact of the pandemic with more targeted policies aimed at supporting economic recovery. .

The UAE’s economy is expected to grow at a convincing 2.1% rate this year, thanks to these measures, according to the CBAUE. It is also expected to increase at an impressive 4.2% rate in 2022.

The newspaper said the recovery is the result of “sound monetary policies and of course preventive health policies, including a remarkable vaccination campaign which saw more than 91% of the population fully immunized, the highest rate in the world. world”.

“The recovery must nevertheless be protected,” he added.

“With the emergence of a new variant of COVID-19, Omicron, there is an air of uncertainty that casts an unwelcome shadow on the sense of euphoria that previously prevailed in the world. Global markets, for example, have closed in red on Friday as central banks sent mixed comments The World Health Organization said over the weekend that it expected Omicron to replace Delta as the dominant variant this winter, ”continued the English language newspaper based in Dubai.

With the UAE in a comfortable place to deal with the new pressure, the CBUAE is keen for the economy to continue its solid growth. On Saturday, it therefore announced that it was extending its stimulus program, TESS, until the end of 2022 “to support new loans and financing, as well as prudential relief measures concerning the capital reserves of banks and stable liquidity and funding requirements “.

The newspaper said it was a “prudent and important step”.

The Banking Federation previously said UAE banks are in a strong position, forecasting asset growth of between 8% and 10% next year as the economy continues to recover.

With the new announcement, banks will continue to be eligible to access the AED 50 billion zero-cost guaranteed liquidity facility until June 30 next year. “With Omicron’s uncertain growth globally, the CBUAE’s decision will ensure that the UAE economy is unaffected and continues to grow solidly,” the document concluded.