United Arab Emirates’ central bank to Back Banks in Dubai Meltdown

UAE faces up to $184 billion total debt: BofA-Merrill Lynch (Reuters):
LONDON (Reuters) – The United Arab Emirate (UAE) has total debt amounting to $184 billion at the end of 2009, according to estimates by Bank of America-Merrill Lynch, which said the region faces a heavy redemption schedule until 2013.



DUBAI, United Arab Emirates (AP) — The United Arab Emirates’ central bank is saying it “stands behind” local and foreign banks operating in the country, offering them access to money in a sign the Gulf Arab nation’s federal government is racing to curtail investor fears over Dubai’s crushing debt.

The UAE’s official WAM news agency said Sunday the central bank issued a notice to Emirati banks and foreign banks with branches in the country saying it would make available “a special additional liquidity facility linked to their current accounts at the central bank.”

The statement comes just days after world markets reacted with shock to news that conglomerate Dubai World wanted creditors to give it a six-month extension on paying some of its $60 billion in debts.

Published: November 29, 2009
Filed at 9:28 a.m. ET

Source: AP

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