UAE launches rescue initiative for struggling small firms
According to Reuters, UAE banks agree some “Mini Insolvency Law” to help struggling SMEs whereby Banks in the United Arab Emirates would suspend legal action against small and medium sized enterprises (SMEs) struggling to repay their debt. The understanding is for up to three months aimed at preventing a surge in defaults that may jeopardise the whole economy of the UAE.
The initiative, involving members of the business sector coordinating with the finance institutions, is intended to give the SMEs that represent approximately 60% of UAE’s gross domestic product, some extra room and time to manoeuvre. Banks have been hit by the downturn in contracts turnover as a result of prices volatility of commodities. . . .