(MENAFN) The UAE's Higher Committee of the Nationals' Defaulted Debts Settlement Fund has allocated USD410 million to clear debts of Emirati nationals, reported Arabian Business citing WAM news agency.
The move comes following an order made by the country's president HH Sheikh Khalifa bin Zayed Al Nahyan.
According to WAM's statement, the decision was driven by proposals made by 6 major lenders based in the UAE, nevertheless, it didn't reveal how many nationals were qualified for the measure.
The rescheduling of loan repayments by indebted citizens will not surpass 50 percent of their monthly salaries, whereas banks have consented to reduce interest on monies owed by 1 percent.
In May, the president set aside nearly USD136 million to settle defaulted loans for every indebted citizen, and in August, the central bank ordered banks to extend maturities on personal loans held by nationals by more than 4 years.
Furthermore, in November, authorities freed almost 290 Emirati nationals who were jailed for bouncing security cheques.