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Mashreq Provisions for Saudi Firms are Adequate-CEO - ASHARQ AL-AWSAT English Archive
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KUWAIT, (Reuters) – Mashreqbank, the United Arab Emirates’ fourth-biggest bank by market value, has taken adequate provisions against its exposure to two indebted Saudi conglomerates, its chief executive said on Monday.

“We took 50 percent for provisions and this is enough,” Abdul Aziz Al-Ghurair told reporters on the sidelines of a financial forum.

The UAE central bank told lenders in July to book 50 percent of their exposures to Ahmad Hamad Algosaibi & Bros and 75 percent for Saad Group

Mashreq — embroiled in a lawsuit with Algosaibi, which itself is entangled in a legal battle with Saad over nearly $10 billion in outstanding debt obligations — has said it has a $400 million exposure to the two.

It booked provisions of 849 million UAE dirhams ($231.1 million) in the third quarter.

Last month, sources said Algosaibi planned to meet creditors within weeks in a bid to reach a global settlement with lenders.

“There are good indications in this direction,” Ghurair said of any potential deals.

“Now they started to talk to offer some settlement. Of course we’ll take every appropriate procedure to get our money.”

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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