State-run agency WAM reported on Sunday the United Arab Emirates government will settle or restructure the toxic loans of about 368 Emirati nationals worth nearly AED568 million ($154.6 million).
UAE President Sheikh Khalifa bin Zayed Al Nahyan has ordered the settlement of defaulting personal loans of citizens whose debts are less than AED5 million, be they in detention, pending trial or convicted, or settling their debts through installment schedules set by the courts, WAM said in its report.
The UAE’s Supreme Committee of the Debts Settlement Fund for Citizens recommended that the government settles loans of citizens with limited income with the concerned banks, fully or partially, whose loans are no more than AED5 million.
The total number of locals to benefit from the presidential order is 368 citizens with total defaulting debts of AED568 million, the state run news agency said. The report added that 60 locals are detained or had court sentences issued against them with a total sum of AED68.8 million.
It is the second time in almost six months that the UAE government has stepped in to settle the loans of Emirati nationals. The SCD Fund, established in December with a capital of AED10 billion, settled AED2bn ($544.5m) of debt owed by UAE nationals, including some who were detained for defaulting on loans.