ID :
35805
Tue, 12/16/2008 - 12:21
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http://m.oananews.org//node/35805
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UAE has no liquidity problems, says Al Suweidi
Abu Dhabi, Dec 16, 2008 (WAM) - The UAE has no liquidity problems, said Sultan bin Nasser Al Suweidi, Governor of the UAE Central Bank. The UAE Central Bank chief attributed the current global credit crisis to high inter-banks lending rates. Al Suweidi predicted a slight decline in UAE's economic growth as compared to high growth rates in the previous years.
"The impact of the current global financial crisis will be felt severely next year across the globe", Al Suweidi told reporters here today.
Suweidi said that the UAE Central Bank has adequate resources to pump liquidity to the local banking system, adding that the government has issued treasury bonds to cover the amount of the stimulus package given to the local banks recently. The national banks did not use the full amount injected to them by the government, Al Suweidi noted.
The banking sector in UAE is strong and solid; the Governor reiterated citing the figures of the Central Bank's current reserves.
The Central Bank has embarked upon a comprehensive review of the credit scene in the country, especially the property loans.
The control and monitoring of the banking activities in the country may not necessarily prevent financial crises, Al Suweidi said.
He also said that the Central Bank's rate cuts in line with the US Fed rate cuts will not necessarily contribute to solving the problem. Al Suweidi hoped that the banks will continue lending in near future.
He said that the UAE has adequate resources to invest in the country's economic growth, and the fall in the oil prices will not affect the economy.
The Governor predicted that the property sector will be exposed to a degree of price rectification. At the same time, he attributed the recent marginal fall in the rent rates in the local market to psychological aftermaths of the global financial crisis.
"The impact of the current global financial crisis will be felt severely next year across the globe", Al Suweidi told reporters here today.
Suweidi said that the UAE Central Bank has adequate resources to pump liquidity to the local banking system, adding that the government has issued treasury bonds to cover the amount of the stimulus package given to the local banks recently. The national banks did not use the full amount injected to them by the government, Al Suweidi noted.
The banking sector in UAE is strong and solid; the Governor reiterated citing the figures of the Central Bank's current reserves.
The Central Bank has embarked upon a comprehensive review of the credit scene in the country, especially the property loans.
The control and monitoring of the banking activities in the country may not necessarily prevent financial crises, Al Suweidi said.
He also said that the Central Bank's rate cuts in line with the US Fed rate cuts will not necessarily contribute to solving the problem. Al Suweidi hoped that the banks will continue lending in near future.
He said that the UAE has adequate resources to invest in the country's economic growth, and the fall in the oil prices will not affect the economy.
The Governor predicted that the property sector will be exposed to a degree of price rectification. At the same time, he attributed the recent marginal fall in the rent rates in the local market to psychological aftermaths of the global financial crisis.
