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FINANCIAL NEWS
UAE’s non-performing loans up 6.67% in Q1
05 Jun 2011
(MENAFN) UAE Central Bank senior executive director of banking, Saeed Al Hamiz, stated that non-performing loans (NPL) in the banking system climbed 6.67 in Q1 compared to 6.25 in the previous quarter, its eighth consecutive monthly raise, reported The National.
Al Hamiz also said that the Central Bank expected the second half of the current year to record a further increase in NPL. He pointed out that the increase was normal as the global financial crisis was affecting economies.
The executive director added that the UAE saw an increase in demand for business as well as demand for real estate as there was a lot of supply recently.
It is worth noting that Al Hamiz explained that banks in the UAE increased their lending to the property market before the global financial crisis as prices soared, only to be hit by heavy losses by the subsequent collapse in prices by more than half in some areas.
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