Tuesday 17 July 2012

MIDEAST DEBT-In UAE money market, an echo of Libor controversy | Reuters

The decision by Barclays to quit the United Arab Emirates' interbank rate-setting panel underlines the global impact of the Libor scandal, by raising questions over whether the UAE lending benchmark needs to be reformed.

Barclays has said it wants to leave the panel of banks which sets the Emirates interbank offered rate (Eibor), industry sources told Reuters this week. That follows the British bank's admission that it manipulated the London interbank offered rate (Libor), for which it was fined over $450 million by U.S. and British regulators.

UAE authorities have not accused anyone of manipulating Eibor, which is used as a basis to price loans and other financial instruments in the Gulf's top financial centre.

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