Thursday 19 March 2009

U.A.E. Rules Out Liquidating Amlak Finance, Tamweel

United Arab Emirates economy minister Sultan Bin Saeed al-Mansouri ruled out liquidating the country’s biggest mortgage lenders and backed a merger of the two companies.

Amlak Finance PJSC and Tamweel PJSC won’t be liquidated, he told reporters at a press conference in Dubai today. A merger of the two mortgage providers would be a “good option,” he added.

The government rescued the two lenders in November, taking them into state control, after they suspended new home loans. The state set up a committee last month to decide whether to merge, liquidate or restructure the two companies separately.

“We see it as our responsibility as the government to make sure that no entities, whether it is Amlak, Tamweel or others can be affected by this kind of crisis,” al-Mansouri said.

Real-estate prices have fallen 25 percent in Dubai from September’s peak and 20 percent in Abu Dhabi, Morgan Stanley said in a Feb. 2 report.(END)

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