Debt amounting to more than Dh475 million ($129.3 million) is to be wiped out from the financial burden of 1,435 Emiratis in a government agreement with 19 national banks and financial institutions.
Under a directive from President Sheikh Mohamed, the Defaulted Debts Settlement Fund will offer financial relief to cover humanitarian and medical cases, low-income borrowers, the deceased, low-income retirees and senior citizens.
The announcement was made in honour of the UAE's National Day, Eid Al Etihad, on December 2.
Settlements with banks are carried out according to strict legal and regulatory criteria related to the nature and purpose of each loan, with priority given to essential and necessary expenses.
The initiative, reported by state news agency Wam, seeks to reduce pressure on the defaulted and help them regain financial stability, while contributing to broader social development.
In a separate agreement, Sheikh Mohamed has approved the disbursement of Abu Dhabi's third housing benefits package of this year.
Valued at Dh4 billion, the new package will benefit 3,
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