UAE National Day: Banks wipe Dh800 million-plus debt for 1,600 Emiratis

President Sheikh Khalifa announced the move in agreement with 12 local lenders

Lawyers were told the measures were part of efforts to prevent firms from being used in money-laundering schemes. The National    

Twelve UAE banks have agreed to waive the debts of more than 1,600 Emiratis to help them get their finances back on track.

In total, Dh869 million ($236m) owed by 1,607 citizens will be written off.

President Sheikh Khalifa announced the move to coincide with National Day. The debt settlement fund was first established in 2011.

On average, the Emiratis in the latest round would have owed about Dh540,000 each.

Jaber Al Suwaidi, director of Abu Dhabi Crown Prince Court and chairman of the Supreme Committee of the Troubled Debts Fund, thanked the banks for their co-operation.

Ala’a Eraiqat, chief executive of Abu Dhabi Commercial Bank Group, said it was pleased to help "struggling citizens with limited income and discussing ways to reschedule their debts to protect them from default, especially in light of the repercussions of the Covid-19 pandemic".

Peter England, chief executive of National Bank of Ras Al Khaimah said: "We will continue at RakBank to work with the ministry and our customers to find appropriate ways to help alleviate the debt burden ... and we look forward to continuing this co-operation in the coming years."