COVID-19: Sharjah govt rolls out $1.08bn as financial support

The first bank to have subscribed to Sharjah Liquidity Support Mechanism's initial tranche was Bank of Sharjah

COVID-19: Sharjah govt rolls out $1.08bn as financial support
Dubai Media Office
COVID-19: Sharjah govt rolls out $1.08bn as financial support

The Sharjah Finance Department (SFD) has initiated a $1.08bn (AED4bn) financial framework to enhance liquidity for the banking system in the emirate.

The move aims to provide additional financial assistance to all businesses impacted by the outbreak of COVID-19, UAE's state run news agency, Wam reported.

In addition, SFD said in a statement: "Issued as 12 month dirham-denominated paper in several tranches, the Sharjah Liquidity Support Mechanism, SLSM, Sukuk represents the first rated short term local currency tradeable instrument in the UAE, which can be used for liquidity management by banks."

Speaking about the financial support, director-general of SFD, Waleed Al Sayegh, said: "The authorities in Sharjah and across the region are taking required measures to provide maximum assistance to all businesses dealing with the impact of the outbreak. This service will allow banks to use Sukuk as security to avail liquidity facilities at the UAE Central Bank, by following the guidelines."

Sayegh further added that since the beginning of the ongoing pandemic, the Sharjah government has introduced several packages and services to support companies and individuals dealing with its impact.

The first financial institution to have subscribed to SLSM's initial tranche was Bank of Sharjah, in May, with an $544.5m (AED2bn) participation. 

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