United Arab Emirates' central bank to offer liquidity amid Dubai meltdown

UAE to back banks amid D

The United Arab Emirates' central bank said Sunday it would offer additional liquidity to banks, signaling a push by the federal government to reassure investors worried about the country's banking sector and its exposure to Dubai's crushing debt. Global equity markets were set to reopen Monday, and investors are worried about a routing similar to that seen last week after Dubai's chief engine for growth, Dubai World, announced it wanted more time to pay some of its roughly $60 billion in debts. The UAE's official WAM news agency said the central bank issued a notice to Emirati banks and foreign banks with branches in the country saying it would make available "a special additional liquidity facility linked to their current accounts at the central bank." The statement said the facility can be drawn upon at a rate of 50 basis points - half a percent - above the three-month Emirates interbank offered rate.