The Higher Committee of the Nationals' Defaulted Debts Settlement Fund approved on Monday an amount of Dh1.494 billion to settle the defaulted debts owed by UAE citizens to various banks.
Deputy Minister of Presidential Affairs and Chairman of the Higher Committee presided over a meeting of the committee at the ministry headquarters and reviewed reports presented by six national banks that included National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, First Gulf Bank, Abu Dhabi Islamic Bank, Union National Bank and Al Hilal Bank.
Opening the discussions, the committee lauded the directives of President His Highness Sheikh Khalifa bin Zayed Al Nahyan to guarentee the citizens all means of decent life and relieve them of the burden of debts that impede their stable family life. They also praised the diligent follow-up of the implementation of the President's directives by Deputy Prime Minister and Minister of Presidential Affairs, Sheikh Mansour bin Zayed Al Nahyan.
The reports presented by the banks dealt with the rescheduling of the loan repayments by the citizens in such a way that the reimbursed amounts each month will not exceed 50 per cent of their salaries transferred to the banks. The banks also agreed to cut the interests on the loans by one percent.
The committee lauded the banks for their adherence to a high degree of social responsibility and said that their initiative will boost the partnership between them and the Fund.
Several local and foreign banks operating in the country have signed agreements with the Debt Settlement Fund for UAE nationals.
The Presidential decree granting the citizens necessary protection from criminal proceedings stipulated by the penal code for issuing security cheques to the lending banks has helped to settle several debts in a fast manner.
The Fund has been successful to settle a large number of default loans through a mechanism that combined partial write-offs with payments by the Fund.