In the resurrection of the UAE made in defense of their banks in order to prevent any potential capital outflows. Thus, national, federal authorities are trying to resist the debt problems of Dubai.
Central Bank of UAE has created additional lines of liquidity injection to ease fears about the banking system, but investors are worried because of the short-term impact on local markets, as regional traders felt that the cause of global sale was reported that one of the flagship sites of Dubai - "Dubai World" requests the postponement of the creditors until May.
Because of the Muslim holiday of stock markets in Dubai and Abu Dhabi opened only on Monday after the shocking statements by Dubai World, which was made on Wednesday. Some players predicted a market of Dubai and Abu Dhabi fall to record low levels because of the likely impact on the banking system.
UAE Central Bank announced its readiness to provide creditors access to additional liquidity and that the UAE is committed to support banks and branches of foreign groups. "The Central Bank says that UAE's banking system is strong and provide liquidity, even more than a year ago," - said in a government response.
Meanwhile, Dubai World is prepared to persuade the owners of bonds to refinance Nakheel timing of payments, while the government will compensate for losses due to inactivity officials belittled the problem of failure to respond to Dubai's debt, which reached a high of $ 80 billion
UAE authorities have been negotiating with officials in Dubai at the weekend to formulate a response to the fears of investors and reduce the damage to the UAE economy.
Nakheel has to pay $ 4 billion of Islamic bonds in the next month, while the total debt of the parent company amounts to $ 59 billion
Bankers expect intervention from Abu Dhabi, which is funding its massive capital CB and plays a key role in the financial prosperity of Dubai. However, Abu Dhabi has always maintained that such issues should be addressed at the federal level.
Abu Dhabi officials also said that while they provide all the seven Emirates, they are not discharged Dubai blank check.
The reaction of CB was mixed.
Economist, Standard Chartered, Marios Marafeftis (Marios Maratheftis) said that he sees positive dynamics in the fact that the Central Bank sends signals to the rest of the banks and the world that he would support banks.
The banking analyst at EFG-HERMES Madhu Raj (Raj Madha) welcomes this step, but also said that the Central Bank will have to do much more.
Central Bank of UAE has created additional lines of liquidity injection to ease fears about the banking system, but investors are worried because of the short-term impact on local markets, as regional traders felt that the cause of global sale was reported that one of the flagship sites of Dubai - "Dubai World" requests the postponement of the creditors until May.
Because of the Muslim holiday of stock markets in Dubai and Abu Dhabi opened only on Monday after the shocking statements by Dubai World, which was made on Wednesday. Some players predicted a market of Dubai and Abu Dhabi fall to record low levels because of the likely impact on the banking system.
UAE Central Bank announced its readiness to provide creditors access to additional liquidity and that the UAE is committed to support banks and branches of foreign groups. "The Central Bank says that UAE's banking system is strong and provide liquidity, even more than a year ago," - said in a government response.
Meanwhile, Dubai World is prepared to persuade the owners of bonds to refinance Nakheel timing of payments, while the government will compensate for losses due to inactivity officials belittled the problem of failure to respond to Dubai's debt, which reached a high of $ 80 billion
UAE authorities have been negotiating with officials in Dubai at the weekend to formulate a response to the fears of investors and reduce the damage to the UAE economy.
Nakheel has to pay $ 4 billion of Islamic bonds in the next month, while the total debt of the parent company amounts to $ 59 billion
Bankers expect intervention from Abu Dhabi, which is funding its massive capital CB and plays a key role in the financial prosperity of Dubai. However, Abu Dhabi has always maintained that such issues should be addressed at the federal level.
Abu Dhabi officials also said that while they provide all the seven Emirates, they are not discharged Dubai blank check.
The reaction of CB was mixed.
Economist, Standard Chartered, Marios Marafeftis (Marios Maratheftis) said that he sees positive dynamics in the fact that the Central Bank sends signals to the rest of the banks and the world that he would support banks.
The banking analyst at EFG-HERMES Madhu Raj (Raj Madha) welcomes this step, but also said that the Central Bank will have to do much more.
The Financial Times
November 30
November 30
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