gulfnews : UAE’s non-performing loans to peak above 10% in 2011

Non-performing loans (NPLs) of the UAE banks are expected to peak above 10 per cent this year up from 8.3 per cent in 2010 and 4.9 per cent in 2009, rating agency Moody's said in a report Thursday.

Moody's expects the upcoming Dubai Holding's $10 billion (Dh36.7 billion) debt restructuring will be one significant contributor to this year's NPL levels.

"Dubai-based banks typically have high exposures to Dubai government-related entities, and we consequently expect NPLs to peak in 2011 at around 6 per cent to 8 per cent in Abu Dhabi and 11 per cent to 14 per cent in Dubai," said Khalid Howladar, vice-president — Senior Credit Officer at Moody's.

* username: rupertbu