It said this in a Statement: "Central Bank has issued a notice to UAE banks and branches of foreign banks operating in the UAE, making available to them a special additional liquidity facility linked to their current accounts at the central bank, at the rate of 50 basis points above the 3 months EIBOR (Emirates interbank offered rate)."
It will be interesting to see if this "facility" will actually be used.
In the past banks in the UAE have complained that such Central Bank facilities are always expensive.
One thing's for sure: banks are going to lend even less now and exacerbate the recession in the UAE.
Funding will most likely be gotten elsewhere.
Post a Comment