UAE banks assign 44% more for provisions

Banks in the UAE set aside 44 per cent more money for non-performing loans in August compared with a year before.

The value of bad loan provisions jumped to Dh26.3 billion from Dh18.3 billion, the Central Bank said on its website yesterday. The provisions rose every month during the year to August, data showed.

The UAE economy, the Arab world's second-biggest, is stronger than it was nine months ago, though it's expected to contract this year, Central Bank Governor Sultan Bin Nasser Al Suwaidi said in an interview on July 15. The economy grew 7.4 per cent in 2008, according to Central Bank data.