It is wrong that the Central Bank can talk of the liquidity in the UAE as being "abundant" and bankers can say that the "liquidity situation is much better", but at the same time many large development companies have not paid their suppliers. All this spare money sitting in the banks should be used to pay off the contractors and suppliers who had the misfortune to be working for the large developers at the end of the boom in 2008.
It is obviously very good news that liquidity has returned to the UAE's banking system in such abundance that the Central Bank governor "expects the emirates interbank rate to go down further because the liquidity situation has improved". And Sultan Al Suwaidi is right to ask the banks to drop their interest rates, and so reduce the cost of borrowing.
But all this banking liquidity has to trickle through to the business world, which is still coping with the terrible effects of the property slump in which the real estate market's huge 60 per cent share of the country's GDP fell by more than 50 per cent. The government rescues have saved the large developers, but it is now the suppliers and contractors who need the money.
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