UK banks have $49.5bn in outstanding loans in UAE

Banks in the UK have offered more in loans to the UAE than anywhere else in Europe

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Friday, 27 November 2009 12:05

UK banks have a total of $49.5 billion in outstanding loans in the United Arab Emirates (UAE) according to research published by the Royal Bank of Scotland.

The figure is the highest in Europe and is a source of some concern give the request by Dubai World, for a "standstill" agreement on $59 billion of liabilities, as it negotiates to extend maturities.

Moody's Investors Service said earlier it would consider the plan a default should bondholders be forced to accept the terms.

A total of $87.3 billion has been extended by the continent's lenders to the Gulf country as of June 2009, RBS said citing Bank for International Settlements data.

RBS said that the data is for loans and excludes bonds, and that separate figures for Dubai are not available. However, the news from Dubai has helped to weigh the FTSE down this morning. It is currently down 11.52 points, or 0.22% at 5182.61.