Tamweel may be under pressure to find fresh funds to the tune of about Dh5.7 billion before June 30 to honour its financial commitments. This is revealed by the contractual asset-liability mismatch in the UAE's largest Islamic mortgage financer's first quarter financials.
In the case of Amlak Finance, the second largest player in the Islamic home finance market, the fund requirement before December 31, will be in the region of Dh13bn. While Tamweel shows cash and bank balances of Dh332 million as of March 31, Amlak's bank balance is at approximately Dh600m, as of December 31, 2008.
These two mortgage financiers, which are together thought to control nearly 60 per cent of the mortgage business in the country, may not be able get back to business until fresh funds are injected into their kitty. No fresh loans are being processed currently, according to market sources.
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