UAE banks to book 10 pct of domestic NPLs-analyst | Reuters

United Arab Emirates banks would likely record 10 percent of their exposure to Dubai's debt-laden conglomerates as non-performing loans, while growth is expected to resume only in 2011, a Credit Suisse executive said.

Mohamad Hawa, head of MENA equity strategy at Credit Suisse, said the remaining exposure would likely be booked as lower interest income and considered a restructuring of debt rather than non-performing loans.

"Although you can argue that the economic value of the restructured debt is around 60-70 percent on the dollar, we don't really think that banks have to or will take an effective rate cut of 30-40 percent," he told on the sidelines of a research roundtable on Monday.