Big UAE banks to benefit from $14.6bn Dubai World debt restructuring | The National

Big UAE banks to benefit from $14.6bn Dubai World debt restructuring | The National:



"The UAE’s big banks are set to receive a boost from the restructuring of $14.6 billion of Dubai World debt.



The UAE financial system, and especially Emirates NBD, will benefit, says the ratings agency Moody’s Investor Services. It said that the deal hammered out last month between the investment conglomerate and more than 100 creditors is “credit positive” for the banks, and would reduce total non-performing loans (NPL) by 2.7 percentage points. The full extent of the reduction will be clear once banks report their figures for 2014, Moody’s said.



But it looks as though Emirates NBD, the biggest bank by market share and also the biggest UAE creditor to Dubai World, is an immediate winner. The bank – 56 per cent owned by the government’s flagship investment institution Investment Corporation of Dubai – has been able to reclassify its $2.3bn exposure to Dubai World from “impaired” to “performing”, which will help the bank report a dramatically improved level of bad debts, down from 15.1 per cent to 8.3 per cent in 2014."



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