#UAE banks face write-downs of between 25%-50% on NMC debt - sources - Reuters

UAE banks face write-downs of between 25%-50% on NMC debt - sources - Reuters:

Banks in the United Arab Emirates (UAE) with exposure to troubled hospital operator NMC Health risk having to make provisions for between 25% to 50% on more than $2 billion of outstanding debt to the company, three banking sources said.

NMC, the largest private healthcare provider in the UAE, was placed into administration earlier in April after months of turmoil which followed questions about its financial reporting from short-seller Muddy Waters. NMC’s shares were suspended two months ago and on Monday the company requested the delisting of its shares from the London Stock Exchange.

Some UAE banks have classified their debt exposure to the company as “doubtful”, a UAE central bank document showed and one of the three sources familiar with the matter said.

Other banks in the UAE have higher recovery expectations for their exposure and may treat it as substandard, another source said.