Sheikh Khalifa ordered the establishment of the debts settlement fund on 2 December 2011, the occasion of the 40th National Day with an initial allocation of AED 10 billion, to help heavily indebted Emiratis settle their loans.
In 2014, the number of beneficiaries whose debts were dropped amounted to 3,482 citizens and the total value of the waived amount touched AED 1.5 billion.
The beneficiaries fell under the category of 'committed to pay' in addition to the cases of social security, health disability or special needs and a number of humanitarian cases.
The national banks that had waived the debts included Abu Dhabi Commercial Bank, First Gulf Bank, Mashreq Bank, Union Bank, National Bank of Abu Dhabi, Emirates National Bank Dubai, Hilal Bank and National Bank of Umm Al Quwain.
How does the Debt Settlement Fund work?
Banks write off half of the outstanding amount and the other half is bailed out by the government. Banks then collect the money from their customers and pass it back to the government. Those who are helped by the fund are banned from borrowing any more money from banks in the UAE until the obligation is settled.
Only Emiratis are eligible to apply if their loans are the subject of litigation brought before a specific date. An Emirati who has been taken to court by a bank before 2 December, 2011 can apply.
Related links:
Popular searches
