UAE cabinet gives strong assurance that no bank is exposed to credit risk

Nicosia, Oct 14 : The government of the United Arab Emirates, following persistent reports that UAE banks are on the verge of a serious crisis due a Dh500 billion funding shortage, has given a very strong reassurance that it is determined to protect the country's financial and banking system.

UAE President Shaikh Khalifa Bin Zayed Al Nahyan has said that "the UAE economy and banking system are strong and sound" and that the government would guarantee the deposits and savings in all national banks and all lending operations between banks operating in the UAE.

"We are determined to protect our financial and banking system to preserve the interests of our country and people," Shaikh Mohammad Bin Rashid Al Maktoum, Prime Minister of the UAE and Ruler of Dubai told reporters.

The government has decided to pump sufficient liquidity into the financial system if and when necessary.

The announcement about the UAE cabinet determination to protect the banking system has been described by bankers and business executives as a very positive development.

ANI