Thursday 9 July 2020

Sharjah announces $1bn liquidity boost for Covid-hit businesses

SHARJAH, June 3, 2020

Sharjah Finance Department (SFD) has established a framework worth Dh4 billion ($1.1 billion) to boost liquidity into the northern emirate's banking system.
The move is aimed at providing additional financial assistance to all businesses impacted by the outbreak of Covid-19, said a statement from SFD.
"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," SDF said in a statement on Tuesday.
"This paper has a short term investment grade rating of A-2 by Standard & Poor’s rating agency," it added.
SDF Director General Waleed Al Sayegh said: "The authorities in Sharjah and across the region are taking the required measures to provide maximum assistance to all businesses dealing with the impact of the outbreak."
"This service will allow banks to use the sukuk as security to access liquidity facilities at the UAE Central Bank, by following the required guidelines," stated Al Sayegh.
He further added that since the beginning of the crisis, Sharjah government has introduced several packages and services to support companies and individuals.
A first tranche of the SLSM was subscribed to in May by Bank of Sharjah with an Dh2 billion participation. Subsequent tranches with one or more other banks are expected to expand the SLSM to Dh4 billion, it added.-TradeArabia News Service


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