UAE may issue its first sovereign bond by end-2012

30 Jun 2011

(MENAFN) UAE’s financial affairs minister, Humaid Al Tayer, said that after a public debt law would be signed this summer, at the end of 2012, the country would probably issue its first sovereign federal bond, reported Emirates 24/7.

AL Tayer added that in order to set up a debt market in the country, last December the nations top advisory council passed a new public debt bill which would need presidential approval to become a law.

On the other hand, the country’s central bank governor said that the UAE would need to increase its efforts to create local market for government and corporate bonds since it lacked sufficient government debt instruments.

It is worth noting that the new public debt law will limit UAE government debt to 25 percent of the country’s gross domestic product or USD54.5 billion.

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