Know how the UAE Economic Stimulus Package can help in meeting your Debt obligations
- September 2, 2020
- Posted by: Jaya R
- Category: Uncategorized
The crisis at large
Issuance of incalculable numbers of subprime mortgages precipitated the global financial crisis of 2008. The out-turn saw millions of people all over the world, falling victims to foreclosure, losing their properties and valuable assets in the blink of an eye. The current economic crisis engendered by the COVID-19 pandemic mirrors the subprime catastrophe that left a large number of people homeless. Experts are of the belief and opinion that the situation will worsen in days to come.
Given the economic impact of the novel coronavirus pandemic, many investors are worried. Their main area of concern is how to go about making their Mortgage payments, especially if they’ve been laid off from their jobs or been furloughed.
If you find yourself in a challenging situation where you are struggling with your Mortgage repayments, you are not alone. Although you might be worried about losing your home and find yourself unable to get back on track, do not be tempted to flee from your Mortgage commitments or move out of the country.
The Mortgage crisis
Trade and commerce have taken a hit with worldwide businesses shutting down. The industries are reeling under the widespread restrictions imposed by the governments to counter the spread of the virus. At a time like this, all-round retrenchment and heavy pay cuts are some of the desperate measures that enterprises have been compelled to undertake. The cash inflows and liquidity problems have plagued the common man. This, in turn, has affected the ability to repay liabilities, both short term, and long term, resulting in redoubling of defaults and welshing.
Relief packages to counter such crisis
Under such excruciating circumstances, governments all over the world adopt different types of financial assistance measures in the form of relief packages to particularly help the ones in dire straits and keep the economy stable. Such maneuvers are urgent and usually short-lived. For a long term solution, we need more support, counsel, and guidance to steer clear of the emerging economic upheaval.
Measures from the UAE government
The UAE government announced a Stimulus Package of DH 256BN along with a new set of economic measures that will alleviate the financial stress and ensure liquidity in the market. The initiatives endeavor to offer a transitory but much-needed relief to the retail and private sector customers by facilitating the deferral of repayment of loans for up to six months. The measures also will help the financial institutions function normally.
Banks and Financial institutions are encouraged to avail of the Targeted Economic Support Scheme (TESS) to mitigate the repercussions of the Covid-19 pandemic. The affected individuals and small and medium scale businesses have greatly benefitted from this zero-cost funding facility allowing the latter to considerably cut back on the working capital needed to run the business.
The central bank of UAE has also decreased the minimum required down payment from 25% to 20% to increase the affordability of real estate. This is a boon for first-time buyers of real estate because of the concession in equity requirements.
The long term solution
But, as mentioned above, such impromptu measures are an outcome of an emergency, like the one we are facing right now. These are not permanent solutions. So, while we reap benefits from such short term relief measures, we need to think of the long term solution and future as well.
FREED Financial Services is the ultimate guide that every borrower needs when he/she is dealing with the ravages of Mortgage Debt. FREED’s Debt Management Experts will do an in-depth analysis of your financial scenario before evaluating the possibility of restructuring your debt obligations or negotiating a final settlement plan. FREED will delve into the nitty-gritty of your debt issues and clinch favorable deals on behalf of you with the banks. Such dealings will pave the way for a long-lasting stable financial future.
Call +971 4 3691880 or write to us at email@example.com to book a free consultation session.