UAE banks face Dubai World losses of 10%-20%, says Moody's - Business Intelligence Middle East - bi-me.com - News, analysis, reports

UAE banks may need to set aside as much as 20% of their loans to state- owned Dubai World to cover losses after it announced a US$23.5 billion debt restructuring, reported Bloomberg, citing Moody’s Investors Service.

Losses as a result of the new debt terms “will be manageable and within a range of 10%-20% on average for the exposed banks,” John Tofarides, a bank analyst at Moody’s told Blooombeg in a phone interview from Dubai Tuesday.

Moody’s estimates the Dubai World restructuring will wipe out between 6%-12% of the banks’ regulatory capital, he said.