NMC rejects calls for administrative detention as the debt crisis escalates


Source: Dubai – Arabic.net

The crisis of NMC Health is escalating day after day, as the health care company announced its rejection of calls for administrative detention, after UAE banks revealed that they exposed more than $ 2 billion to the company.

After Dubai Islamic Bank announced exposure to NMC, and its subsidiaries, at about $ 541 million, the bank’s share continues to decline in the Dubai Financial Market, given that such exposure threatens half of its annual profits, according to Bloomberg. The shares of Abu Dhabi Commercial Bank fell after submitting an application to place the company under judicial custody.

The company said in a statement on Monday that it would resist any of these steps.

Ali Al-Enemy, Head of Asset Management at Daman Investment, said that the exposure of the companies listed on the NMC came from the banking sector and there is $ 2.8 billion exposure on the banks. The effect on the banks will be on their profits, for example on the Abu Dhabi Commercial Bank and Dubai Islamic Bank 40 to 60% of their annual profits, but with all that we see that some banks are demanding the liquidation of NMC business.

Abu Dhabi Commercial Bank exposure to the company is about $ 981 million.

“It seems that this matter will have painful effects on the banks,” said Joise Mathew, Head of Equity Research at United Corporation. He added that this will increase the suffering of banks, as well as being affected by the decline in oil prices and the decline in asset prices, as well as the consequences of the Corona virus.

Citigroup said in a report that the profits of 5 banks will be affected by 23% due to its exposure to NMC.


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