EIB extends Dh274.5m worth of loans this year

Loans worth Dh274.5 million have been approved this year by the Emirates Industrial Bank (EIB), which is in the process of taking over the Emirates Real Estate Bank (EREB) in one the country's largest mergers.

Loans for 27 industrial projects were approved during a board meeting of the bank, chaired by Obaid Humaid Al Tayer, UAE Minister of State for Financial Affairs.

According to EIB General Manager Mohammed Abdul Baki: "The board was briefed about loans and facilities amounting to Dh274.5m approved by the management of the bank during the current year. These loans and facilities were extended to 27 industrial projects."

The board also approved the budget of the bank's revenues and expenses for the year 2010. According to the bank, it is expected the next board meeting will be held during the first quarter of 2010 in order to decide about loan applications and review the financial statements for the year 2009.

From January to May this year the bank offered credit facilities to the tune of Dh129.5m for 12 projects that were approved at the annual general meeting in June.

EIB is now in the process of a major merger to establish a government-owned development bank that will be the second such big merger in the banking sector after the merger of Emirates Bank and National Bank of Dubai.

EIB will be merged with EREB to create the Emirates Development Bank (EDB) with a capital of Dh10 billion following a Federal Cabinet decision in June this year

The government has pledged to raise Dh5bn through acquiring EIB's private stakes. EIB's private sector stakeholders have already agreed to sell their shares in the bank to the Federal Government to help speed up the process for the merger. The decision to sell their stakes to the government was taken during the bank's annual general meeting in June this year with the unanimous approval of all stakeholders.

EIB is 51 per cent owned by the Ministry of Finance and 49 per cent by a number of private sector investor establishments in the country.


FNC panel discusses EDB bill

The Committee on Financial Affairs at the Federal National Council (FNC) discussed a bill on the establishment of Emirates Development Bank. Committee members gave their comments on the bill which was relayed to representatives of the government.

The bill, which was earlier returned to the committee at FNC's 15th meeting, will be discussed at the next meeting by the committee. The meeting was held at the premises of FNC Secretariat General in Dubai.

Present at the meeting were Abdullah Nasser Al Mansouri, Chairman of the committee, Youssef Obaid Al Nuaimi, Rapporteur of the committee, Younes Haji Khouri, Director-General of the Ministry of Finance, Abdul Aziz Al Za'abi, CEO of the Real Estate Bank, officials of the ministry and Central Bank. (Wam)

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