New fund of $13.6 billion set up by UAE to tide over crisis

Since the bankruptcy of Lehman Brothers, financial institutions all over the world had been facing a tough time. To ease the burden on the Emirates’ banks and help them better fight the global financial crisis, the UAE Central Bank has funded a whopping amount of $13.6 bn.

The Central Bank’s board of director announced, “The bank has discussed the position of inter-bank deposits which has been affected by the liquidity constraints in international money markets and may pump in more money to ease it.”

They further said, “To remedy this situation, the Central Bank has decided to set up a facility amounting to 50 billion dirhams ($13.6 billion) for banks operating in the Unite Arab Emirates, to be used by these banks if so needed.”

The bank said, “We Expect that these funds would meet banks needs for supporting continued financing of economic growth.”
The board further reviewed more existing resources to provide better support to banks working in the UAE if it is required.

The bank earlier had announced that the UAE’s banking system is not facing any kind of risk due to the economic disorder in the US.