IMF commends UAE's move to inject Dh120bn

The UAE Central Bank Governor Sultan Nasser Al Suwaidi said the financial crisis is over when it comes to the financial part but its repercussions are still clear on the property and investment sectors.

He was speaking at a conference to announce the report of the executive council of the International Monetary Fund (IMF) discussed in Washington on February 3. The report commended the UAE Government's decision to inject Dh120 billion into the banks.

He said the central bank has taken the decision to finance the local banks 10 days before the government's decision was taken to ward off the repercussions of the global financial crunch on the UAE banking sector.

He said the report also appreciated the liberalise policies of the banking sector and low interest rates.

Al Suwaidi said the IMF, in its report, called for boosting transparency and release of the financial statements to help in taking appropriate investment decisions for firms. The report also called for improving level of control and inspection on the banks through establishing exceptional inspection system to avoid emergency cases, which invite intervention of the central bank. He said the gap between deposits and loans could not be bridged soon, but would continue for sometime.

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