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No extension of exposure deadline for UAE banks-c.bank official

Monday, 1 Oct 2012 | 1:33 AM ET

KUWAIT, Oct 1 (Reuters) - Banks in the United Arab Emirates will not be given an extension of the Sept. 30 deadline for them to limit their exposure to state-linked debt, a UAE central bank official said on Monday.

"There is no extension. It stands as it is," Saif Hadef Al Shamsi, assistant governor for monetary policy and financial stability, told reporters in response to a question on the sidelines of an Arab central bankers' conference in Kuwait.

Shamsi said the UAE central bank would deal on an individual, case-by-case basis with commercial banks on the issue of the deadline. He did not elaborate.

Under new rules, announced in early April with a Sept. 30 deadline, any bank's lending to the governments of the seven-member UAE federation and related entities is capped at 100 percent of its capital base. Lending to a single borrower is limited to 25 percent. There was previously no limit.

(Reporting by Martin Dokoupil; Writing by Andrew Torchia; Editing by Amran Abocar)

((andrew.torchia@thomsonreuters.com)(+9715 6681 7277)(Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))

Keywords: EMIRATES CENTRALBANK/LOANS