Sunday 25 April 2010

UAE banks to take Dubai World hit in Q2

United Arab Emirates banks are likely to face the brunt of the Dubai World restructuring impact in the second quarter after the central bank told lenders they are not required to book provisions until there is more clarity.

In a circular dated April 22, the central bank told local banks they "are not required to provision their related exposure to Dubai World".

It said it would "provide further guidance to banks concerning the treatment of Dubai World debt in their books".

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