FINANCIAL NEWS

FNC approves new public debt law

29 Dec 2010

(MENAFN) Humaid al Tayer, the Minister of State for Financial Affairs in the UAE said that the Federal National Council (FNC) which is the top legislative body in the country approved a public debt law in a first step towards UAE’s first federal government bonds, reported The National.

The minister said that the selling of bonds would raise money that the government would be use to decrease the $816.7 million budget deficit if needed. First bond sale could take place by the end of 2011 or early in 2012.

Earlier this month, the FNC approved the Federal budget of 2011 with a gap of $10.3 billion. The budget predicts a $11.2 billion of expenditures and $10.3 billion of revenue.

The president of the Gulf Bond and Sukuk Association Michael Grifferty said that the government was in preparations for a bond issuance such as setting mechanisms for trading the securities and gauging demand. He added that federal bonds provide central bank with another tool for influence interest rate and controlling market.

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