UAE lenders likely to take loans haircut - The National

The Central Bank's plans to ease repayment burdens on UAE nationals will result in banks taking a 50 per cent haircut on some personal loans, as the Government attempts to restructure the private debts of the most indebted Emiratis.

Banks are expected to shoulder the burden of debt forgiveness, said Jonathan Morris, Standard Chartered's chief executive for the UAE.

"Banks are being asked to write down around 50 per cent and the Government will take off the rest," he said. "It's a loan, not a free cheque, as we've seen elsewhere in the region."

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