UAE council approves bank bonds guarantee law

A UAE council that advises the country's rulers approved a law on Tuesday that will allow the government to guarantee debt instruments issued by banks.

The law now needs the approval of the UAE president.

This is the UAE government's latest measure to shore up its banking system since the global credit crisis hit. The central bank and finance ministry have together launched Dh120 billion ($32.68 billion) of emergency funding since September to help banks cope with tight credit conditions.

The Federal National Council advises the government on legislation and questions cabinet ministers on issues in a parliament-like tradition in the UAE, which does not allow political parties or full popular representation.

 

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