UAE banks face possibility of writing off 25% to 50% of NMC’s debt

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Dubai – Mubasher: Sources said that the UAE banks exposed to the “NMC Health Group” may face the risk of having to make provisions ranging between 25 percent and 50 percent of the company’s existing debts amounting to more than two billion dollars.

The sources said that some Emirati banks have classified their exposure to “NMC’s debt” as “doubtful of collection”, according to Reuters.

UAE banks have said in disclosures to the stock exchange over the past few weeks that they have exposed more than ten billion dirhams (2.72 billion dollars) to NMC. The Abu Dhabi Commercial Bank said it had a exposure of US $ 981 million to USMC.

And earlier, Emirates NBD mentioned the value of its direct exposure The NMC Healthcare Group and its subsidiaries have reached AED 747.34 million.

Emirates Islamic Bank said that it has a direct exposure to the “NMC Healthcare Group” and related companies, amounting to 676.46 million dirhams..

Dubai Islamic Bank said the value of its exposure to NMC Healthcare and its subsidiaries amounted to 1.6 billion dirhams (equivalent to $ 425 million) as of March 31, 2020..

And Dubai Islamic said in the statement that its Noor Bank had exposure to NMC, at a value of 426 million dirhams ($ 116 million).).

Under the rules of the UAE central bank, doubtful loans can lead to provisions of at least 50 percent for a bank with bad loans. Loans “below the normal level” require provision of 25 percent.

Meanwhile, NMC borrowed from 80 local and international banks in total last month for $ 6.6 billion in debts, which is more than $ 2.1 billion that was disclosed in June last year.

The UAE Central Bank asked earlier, Freezing the bank accounts of the businessman And his family’s accounts, as well as the companies he owns a stake in.

According to a press release, the central bank’s instructions included the accounts of the Shetty family as well as those of the companies in which he owns a stake.

The Central also listed many companies associated with the Indian businessman on the black list along with its entire senior management, and a number of the main employees of these companies in the list similarly.

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