Dubai banks bad loan provisions to peak by 2013 - Banking & Finance - ArabianBusiness.com

Dubai banks’ provisions to cover bad loans may surge to a record in the next two years as debt restructurings continue and a slowing global economy prevents a recovery of the emirate’s property market.

Non-performing loans will peak at 15 percent to 16 percent in 2013, up from 4.8 percent in 2009 and 11.3 percent in 2010, investment bank Exotix said Dec 4.

Moody’s Investors Service expects provisions to peak at 13 percent to 16 percent next year, it said in a report Nov 3. Rasmala Investment Bank said yesterday it expects bad loans to reach a high in 2012.

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