The United Arab Emirates will start injecting 20-25 billion dirhams ($5.45-6.81 billion) into banks in the Gulf Arab state by the end of the week, a newspaper reported on Monday, citing well-informed sources.
The injections, part of a government plan announced earlier this month, will be in the form of two-year deposits that would be proportionate to bank assets, al-Ittihad newspaper reported the unidentified sources as saying. The government last week ordered funds to be transferred to the finance ministry to help lenders stave off the effects of the global credit crisis, but it gave no details on how this would happen.
The newspaper said the style of distribution was decided in a meeting that involved officials from the finance ministry, the central banks and the banks’ top executives on Saturday. (Reuters)