Financial measures by the Central Bank for Expats
During these uncertain times, Expats living in UAE should know about managing credit card payments and loan payments. The biggest worry about the current lockdown is for those who have borrowed credit from banks in the form of Credit Cards and Loans. However, there is some relief for Expats living in the UAE. Here is what you need to know.
Expats in the UAE usually have personal loans, credit cards on average 25-40% of their salary income. To support the loan and credit card holders, The Central Bank in the UAE has announced some measures.
The Central Bank of UAE has asked banks to stand as a support to SMEs, private sector companies and individuals to mitigate the effect of Coronavirus with their TESS (Targeted Economic Support Scheme).
According to this scheme Expats in the UAE can request their banks and seek the provision of temporary relief from payment of principal or interest on their outstanding loans for a period of 6 months. Expats can also request banks for a settlement plan on credit cards. This will save them from the burden of monthly installments.
Check Here: How do you manage your Emergency Funds during COVID-19
Targeted Economic Support Scheme is a scheme introduced to help individuals, private companies and SMEs. The objective of TESS is to reduce the effects of Coronavirus. It has been valid from 15th March 2020.
These are the options provided by the UAE government and the Central Bank of UAE, so all the Expats in UAE make use of these financial measures.
Expat workers can take Early Annual Leaves
In early April, the authorities announced that Expat workers working in the private sectors can take their annual leaves early and go back to their home country during nationwide precautionary measures.
The ministry of Human Resources & Emiratisation has launched the initiative of “Early Leave”. This will help the Expats to go to their home country so that they can spend time in their home country.
The initiative was launched in coordination with the Ministry of Foreign Affairs and International Cooperation, the Federal Authority for Identity and Citizenship, The National Emergency Crisis and Disaster Management Authority and the Civil Aviation Authority.
Note: Travelling is not recommended during this fluid situation to stop the spread of Coronavirus. You have to check with the authorities before you plan for any travel.
Check Here: What UAE bank are offering during COVID-19
Expats can extend their Residency Visas for 3 months
According to the Government of the UAE, Expats in the UAE whose visas were due to expire on March 1, 2020 can extend their residency without any additional fees for a period of three months.
This decision was taken by the Government of the UAE to help the residents as the nation fights with COVID-19.
The government waived fines related to services provided by the Federal Authority of Identity and Citizenship which is valid for 3 months from 1st April 2020.
To ensure more safety for judicial workers and litigants, digital transactions have been approved for Notary Public’s Services. Government services, licenses, permits and commercial registers can be renewed 3 months.
About the author
Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.
