UAE consumer loans grows 46.79 pct
1/9/2008 17:23
Consumer loans in the United Arab Emirates (UAE) reached 54.02 billion
dirhams (US$14.72 billion) at the end of June, up 46.79 percent over 36.80
billion dirhams in June 2007, local newspaper Gulf News reported
today.
According to the statistics released by the UAE Central Bank, the
country's consumer loans have grew by more than 73 percent since the end of 2006
and almost doubled during the past four years.
The rapid growth in consumer
loans has been fuelling the inflationary pressures in the country.
Figures
released by the UAE Ministry of Economy in June showed that the Gulf
oil-producing country's inflation soared to a 20- year record high of 11.1
percent in 2007.
Under the existing rules, UAE nationals and expatriates can
obtain a personal loan of up to 250,000 dirhams while UAE nationals can obtain
loans up to two million dirhams if they own a business.
In addition, there
are a number of retail credit channels such as credit cards, overdraft
facilities and short-term cash advances that banks offer in the UAE.
Because
of the dollar-peg policy, interest rates in the UAE are kept low to track the US
monetary policy, which contributed to the strong growth of consumer loans. (US$1
= 3.67 dirhams)
Xinhua
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