Wednesday 15 February 2012

UPDATE 2-Abu Dhabi helps Dubai again with bank bailout | Reuters

The acquisition of a struggling Islamic lender by Dubai's largest bank Emirates NBD was bankrolled in part by oil-rich neighbour Abu Dhabi, which helped Dubai avoid default just over two years ago, ENBD's finance chief said on Wednesday.

In October, ENBD was ordered by Dubai's ruler to take over loss-making Dubai Bank, which had been rescued by the emirate's government earlier in 2011.

ENBD, whose fourth-quarter results were hit by its exposure to Dubai-linked entities, said the United Arab Emirates' finance ministry gave it a 2.8-billion dirhams ($762.3 million), eight-year loan at below market rates to facilitate the purchase of Dubai Bank.

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