The UAE is expected to issue its first ever federal government bonds before 2018 to help the country’s banks meet global liquidity rules, reported Gulf News quoting a a senior finance ministry official, noting that feasibility studies are still in progress.
UAE banks, such as the National Bank of Abu Dhabi (NBAD) and Emirates NBD, could buy the dirham-denominated government debt to help meet liquidity requirements being phased in under the Basel III global banking standards, the newspaper revealed.
“The purpose of issuing bonds is to meet the requirements of Basel III, since the central bank needs to accommodate Basel’s requests that the country’s banks maintain certain portions of sovereign bonds, in which case the unavailability of bonds will make the requirement difficult to fulfil,” Younis Al Khouri, undersecretary at the federal Ministry of Finance, said.
UAE banks, such as the National Bank of Abu Dhabi (NBAD) and Emirates NBD, could buy the dirham-denominated government debt to help meet liquidity requirements being phased in under the Basel III global banking standards, the newspaper revealed.
“The purpose of issuing bonds is to meet the requirements of Basel III, since the central bank needs to accommodate Basel’s requests that the country’s banks maintain certain portions of sovereign bonds, in which case the unavailability of bonds will make the requirement difficult to fulfil,” Younis Al Khouri, undersecretary at the federal Ministry of Finance, said.
Source:
Mubasher
