Smaller UAE companies struggle for finance as nervy banks tighten credit | Reuters:
"Banks in the United Arab Emirates are cutting credit lines to small- and medium-sized businesses (SMEs) after a spate of defaults, posing a threat to one of the economy's main drivers.
As weak oil prices prompt a drying up of bank liquidity, some lenders are becoming choosier, taking longer to approve loans or asking for more paperwork, while others are cutting lending or recalling loans, say businesses and bankers.
While the trend is mainly because of banks' desire to protect capital, banking sources say some smaller lenders have also been told by the central bank to limit exposure to the sector. Nobody was available to comment from the central bank."
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