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Tuesday, 11 October 2011

Government pledges support for UAE banks - The National

The federal Government is ready to offer support to the UAE banking system in the unlikely event Europe's debt crisis widens into a full-blown credit crunch, says the Minister of Economy.

Europe's banking system showed new signs of stress yesterday as France, Belgium and Luxembourg were forced to nationalise Dexia Bank, the world's largest lender to municipal authorities. "Our exposure there is very small," Sultan Al Mansouri said yesterday, adding UAE institutions did not have large holdings of European sovereign debt. Still, a government committee was prepared to provide more aid for local banks in the unlikely event Europe's crisis spread, he said.

"[The support mechanisms] will always be there," he added.