Gulf banks tighten lending
3 Jan 2009, 1446 Hrs

Add comment          Mail          Print          Write to Editor

Nicosia, Jan 3 Gulf banks, which a few months ago were oozing confidence and predicted record profits, are now confronted with problems as a result of the global financial crisis.

In particular, they have to deal with the slowing of economic growth, which will affect the volume of their business, a serious weakening of the construction and real estate sector and a steep decrease in business tourism.

For this reason, they have decided to tighten lending, something which is also demanded by regulatory authorities.

Since November, several banks in the United Arab Emirates have become extremely cautious in their retail lending due to tight liquidity and the growing prospect of job losses in the private sector.

Thousands of expatriate workers in the construction sector are preparing to leave the UAE, while there are fears that a percentage of salaried people will be unable to repay their loans.

A number of banks have already revised upwards their minimum salary requirement for personal loans for expatriate salaried employees. They also stopped loans to construction and real estate companies.

Last month, the Central Bank of the UAE Central Banksaid that credit growth in the country would shrink from close to 50 per cent in the first half of this year to less than 10 per cent in 2009. (ANI)

Related Latest

Banks drive sensex to 17-month closing high Russell Crowe, Elizabeth Banks survive on-set car accident Tyra Banks named Top Moneymaking Female On Primetime TV by Forbes Tyra Banks flaunts slimmed-down bod in NY photoshoot Provide Tamil option for customers, Malay banks urged Tyra Banks wins diet vow Pak army, ISI lending covert support to the Taliban resistance in Afghanistan: Report Oz navy thwarts piracy attack in Gulf of Aden Tyra Banks loves to bare all, but at home! Ex-worker sues Tyra Banks over outstanding wages

Related Latest

UK ministers question future of Afghan mission India to sustain and enhance global engagements: Anand Sharma Murray bans Christmas to keep heat on rivals England won't repeat last Ashes-winning blunder in South Africa: Collingwood Personal number plates, window stickers - signs of aggressive drivers Peter Andre 'furious' with Katie Price after 'terminations' disclosure Brit couple marries 30 years after saying 'I do'! Brit student pub-crawls come under fire over booze-induced mayhem Tibetans delighted with Dalai Lama's Tawang visit Oz women executives turning to golf to climb up career ladder

• India to sustain and enhance global engagements: Anand Sharma
• Personal number plates, window stickers - signs of aggressive drivers
• England won't repeat last Ashes-winning blunder in South Africa: Collingwood
• Peter Andre 'furious' with Katie Price after 'terminations' disclosure
• Brit student pub-crawls come under fire over booze-induced mayhem

• बीकानेर महापौर चुनावः एक विश्लेषण
• Deepawali: The Festival Of Lights
• Nine tips for nine nights
• need new prevention tech for HIV, other STIs and UP
• "Good health is India's basic need": Easier said than done Mr Prime Minister!