Thursday, 16 April 2009

Pay up, NBQ tells Global

A dispute between the National Bank of Umm al Qaiwain (NBQ) and Global Investment House of Kuwait over the delayed payment of Dh1.44 billion (US$392 million) could be settled in a UAE arbitration court, company sources say.

NBQ is demanding payment from Global, the troubled Kuwaiti investment firm, in accordance with a deal arranged last year in which Global would purchase a 20 per cent stake in NBQ.

In July, the two banks agreed that Global would buy a bond from NBQ worth Dh2.36bn, which eventually would convert into 330 million new shares of the bank. Although the bond has not been issued, Global has paid NBQ Dh918.2m as an advance on the sale.

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