Suwaidi: UAE banks have sufficient liquidity

07 Apr 2010

(MENAFN) The Governor of the UAE central bank, Sultan bin Nasser al-Suwaidi, said that the country’s banking system has enough liquidity to meet the economy’s needs, Khaleej Times reported.

The situation of liquidity and deposits in the banking system is normal and compatible with the economy and its needs at the moment, Suwaidi said in an interview in the Sudanese capital, Khartoum.

The cost of borrowing between UAE banks has increased since Dubai World’s announcement last year that it would delay up to $26 billion in debt payments. Some lenders are calling for a further injection of liquidity from a government that’s already offered banks more than $33 billion to ease the effects of the global crisis.

The three-month Emirates interbank offered rate, the interest rate at which banks borrow and lend to one another, has risen to 2.29 percent from 1.89 percent at the end of 2009.

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