Sharjah Finance Department (SFD) just recently developed a structure worth AED 4 billion to improve liquidity for the Sharjah banking system in the emirate. This move was focused on providing extra financial support to all businesses influenced by the break out of COVID-19.
Released as 12 month dirham-denominated paper in numerous tranches, the Sharjah Liquidity Assistance System (SLSM) sukuk represents the very first rated short term neighborhood currency tradeable instrument in the UAE, which can be made use of for liquidity management by financial institutions. This paper has a short-term financial investment quality rating of A-2 by Standard & Poor's ranking company.
HE Waleed Al Sayegh, supervisor general of Sharjah Financing Division said: "The authorities in Sharjah and also throughout the area are taking the called for steps to offer optimal help to all transaction with the impact of the outbreak. This service will allow financial institutions to utilize the Sukuk as security to gain access to liquidity centers at the UAE Reserve Bank, by adhering to the needed guidelines."
He further included that considering that the start of the situation, Sharjah Federal government has presented numerous bundles and also services to support firms as well as people.
A first tranche of the SLSM was subscribed to in May by Financial Institution of Sharjah with an AED 2 billion participation. Subsequent tranches with one or more various other banks are anticipated to broaden the SLSM to AED 4 billion.