In the ELAR, the eligible liquid assets include required reserves, mandated by the Central Bank, certificates of deposits held by banks at the Central Bank, in addition to. Meanwhile, the Eligible Liquid Assets,13 as a ratio of total liabilities14 remained at 16.6%, i.e., well above the 10% regulatory minimum requirement, constituting an adequate buffer for banks which allows them to weather situations of liquidity squeeze. The average 3-month EIBOR declined from 1.78% in the first quarter to 1.05% in the second quarter. In fact, the rate has been rising steadily for a number of months. In addition some banks offer discounted pricing for a specific period post which the pricing reverts to one of the below structures: a) EIBOR + Fixed Margin This was the result of an increase by 0.8% in the price of tradables7 and a significant drop by 3.9% in the price of non-tradables8. The CBUAE's TESS launched on the 14th March 2020 in the amount of AED 100 billion was expanded with the adoption of the enhanced scheme on the 4th of April to the amount of AED 256 billion. 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The enhanced Targeted Economic Support Scheme (TESS) adopted by CBUAE and the economic stimulus packages announced by both local and federal governments are likely to boost the non- hydrocarbon activities, real estate prices, employment and credit growth with a positive impact on the overall sentiment, once the virus risks are under control (See Box 1 on UAE policy response). "Regulations Regarding Emirates Interbank Offered Rate (EIBOR) Submissions (Amended May 3, 2020)," Pages xxvii-xxx. Forecast assumptions for the year 2020 are as follows: While the bounceback in economic activity is expected in the second half of the year. Table 3.2.2: UAE - Sovereign Credit Default Swaps (CDS) (in bps), 6 https://www.centralbank.ae/sites/default/files/2020- 08/Credit%20Sentiment%20Survey%20-%20Q2%202020.pdf, 15 The minimum regulatory requirement for CAR is 13% (10.5% minimum adequacy and 2.5% capital conservation buffer), 8.5%. Six-month Eibor up 54% in 2018. Bank deposits increased Y-o-Y by 5.2%, led by an increase in GREs and private sector deposits, while credit grew by 5.8% underpinned by healthy financial soundness indicators and supported by the enhanced Targeted Economic Support Scheme (TESS) which was expanded by the Central Bank in early April. The oil GDP growth is estimated based on hydrocarbon output and considering other value adding activities in the sector. ABU DHABI, The interest rates charged by the Emirates Inter-Bank Offered Rate, EIBOR, have continued their impressive increase since the beginning of the year, with EIBOR set for one-month period posting a significant rise of 19 percent over the past two months, surging to 156 points on December 24 from 131 points in early November, according to UAE Central Bank figures. In particular, the average NEER appreciated by 1.8% and 3.4% Q-o-Q and Y-o-Y, respectively, in the second quarter of 2020, compared to an appreciation of 0.5% and 2.4%, respectively, in the previous quarter. LIBOR rates continued to decline while the spread EIBOR vs. USD LIBOR fluctuated around a downward trend. Monetary aggregates increased in April as liquidity conditions were boosted by the TESS initiatives, before declining subsequently due to economic contraction (See Table 4.2.1). Since April 2018, the Central Bank of the UAE has not been acting as the calculating agent of EIBOR and this role has been assigned to Thomson Reuters Ltd as per Notice 75/2018 on "REGULATIONS REGARDING EMIRATES INTERBANK OFFERED RATE (EIBOR) SUBMISSIONS", © 2019 Hamilton International Mortagage Consultant - All Rights Reserved. This has risen further since with the rate on January 7 at 1.055 percent. The level of total liquid assets at banks at the end of Q2 2020 stood at AED 432.4 billion, i.e., AED. 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