Phasing out as well as reduction in the size of projects has helped reduce mortgage provider, Tamweel's outstanding obligations, according to a top company official.
The company returned to profit, posting a net of Dh10.54 million for the first half of this year and its chairman expects the trend to continue.
"We have negotiated with some of the developers, some of whose projects were either phased out or shrunk," said Sheikh Khaled bin Zayed Saqr Al Nehayan, Tamweel Chairman.
"This has helped us to really reduce our commitments," he told Emirates 24|7 while commenting on the recently released first half company results.
"In respect of certain properties held for sale, the group has agreed to a consolidation with the property developer whereby the developer has agreed to cancel the sale of certain properties to the group and adjust the amounts paid for such properties against payable to the property developer in respect of the other properties purchased," said Tamweel's balance sheet.
"Accordingly, cost of such properties held for sale and its related payable have been reversed and the related impairment provision of Dh82.17 million has been either reversed or written off," it pointed out.
The company's commitments and contingent liabilities have also gone down from Dh2.33 billion to Dh2.19 billion.
"We have been working on reducing our property holding and making prudent provisions on our portfolio in line with market expectations." Sheikh Khalid said.
"We started provisioning very early on and now are getting the fruits of our action," he said.
"We do not need to take as much [provisioning] now as we have already swallowed the bullet, so to speak, very early on and we are continuing in this direction," said the Tamweel Chairman.
"In the past six months, we have also reduced some of our obligations. We have paid out mainly to creditors such as banks and other debts owners.
Asked about company plans for relisting of shares, the grant of a banking licence or its merger with Amlak, the Tamweel Chairman would not commit. "I leave that to the authorities. It is in the hands of the authorities."