Friday 20 February 2009

UAE preparing plan to help banks lend again

Dubai: The UAE is preparing a plan to help banks resume lending as the "unprecedented" credit crisis ends a five-year real-estate boom, the chairman of state-owned Dubai World said.

"If we want the banks to lend again to real estate, then obviously governments will have to put a plan," Sultan Ahmad Bin Sulayem, who also sits on a committee studying the effects of the global credit crisis on Dubai's economy, said in a February 17 interview in his office. "I know, I am aware, that the Central Bank and the federal government are taking steps to lend money."

"Any measure involving the federal government to address liquidity and other stresses in the economy will be very positive," said Mohieddine Kronfol, managing director at Dubai- based Algebra Capital Ltd. "This should help bring down the artificially high spreads we are seeing for the regional bonds and credit swaps."

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