Golden Belt Sukuk 1 Certificateholders Make Up Their Minds

Today via an announcement on the Bahrain Stock  Exchange Citibank, the Delegate on the Golden Belt Sukuk, advsied:

The Delegate refers to previous notices issued by the Delegate dated 24 August 2009, 7  October 2009, 17 November 2009, 23 November 2009, 2 February 2010, 16 March 2010, 28 April 2010 and 22 July 2010.

In these notices, the Delegate noted that, in accordance with the Terms and Conditions of the Certificates, prior to acting upon any instructions from Certificateholders it is entitled to be  indemnified to its satisfaction.

The Delegate confirms that on 27 September 2010, it entered into a deed of indemnity (the  Deed of Indemnity) with a number of Certificateholders (the Indemnifying  Certificateholders). The Indemnifying Certificateholders represent at least 25 per cent in  aggregate face amount of the Certificates outstanding.

Acting under instructions from the Indemnifying Certificateholders, the Delegate has served a  Notice of termination of the Sub-Lease and made a demand for all amounts due under the  under the Costs Undertaking.

Suq Al Mal Contact Form Launched

 HMG Now in Public Domain

In response to unprecedented demand  (well, there was one reader and she asked twice), earlier today Suq Al Mal announced the launch of its Contact Form to its readership.

Pictured above, the reaction of the obviously delighted crowds as imagined by Abu Arqala (third on left).  Yet another demonstration, as if one were needed, of Suq Al Mal's proven business model and the confidence of the market in this site and its management. 

So, if you want to send a side message, you now have a way.

However, my strong preference remains that you add a public comment directly to one of my posts.  This fosters dialogue and debate.  And, as can be seen from the instances when it  has happened, dramatically improves the quality of what's on this blog.

You'll find the link on Suq Al Mal's elegant Home Page near the top of the right hand sidebar under the aptly named heading "Pages".  There's always a constant creative tension here at SAM between subtlety and the obvious!

Лучше поздно чем никогда: Dubai Makes Emcredit Official Credit Agnecy

As reported in Gulf News, Shaykh Mohammad has mandated that Dubai Banks use Emcredit.

As indicated above this is a definite Лучше поздно чем никогда moment.

It is also yet another confirmation that bankers are not particularly smart folk.  Though I suppose if you've been watching the testimony of staff from the Goldmine on the TV this isn't going to come as a big surprise.

Why should a sensible and responsible banker have to be forced to get needed credit information?

Global Investment House - Press Release on 2009 Financials

GIH has issued a press release on its 2009 financials.  I thought you might want a more optimistic take on their 2009 performance than that published yesterday on this site.  When you've got the right attitude, you can find success just about anywhere.  And I suppose the contrary may be true as well.

Note the whopping KD5.6 million paid for the restructuring.  

A couple of comments in the press release caught my eye:

In commenting on 2009 legal expenses GIH said: "Global believes that legal and advisory costs relating to the Company’s debt default were of a one-off nature."   Seems reasonable unless they're planning another restructuring.

"Global has adopted best international practices in corporate governance to ensure not only the achievement of a strengthened corporate governance environment, but  to also lead the industry by example."   Лучше поздно чем никогда! 

Central Bank of UAE - New Regulations on Loan Classification and Provisioning Immiment

 

AlKhaleej Newspaper (Dubai) reports on an interview with Saif Hadaf AlShamsi, Chief Executive Director of the CB UAE's Treasury Department that the CBB has prepared the final draft of regulations on loan classification and provisioning and submitted these to the Board for approval.  Approval is anticipated very shortly.   The regulations will apply to banks, finance companies and investment firms.

The new regulations contain the following:

1. A loan will automatically become substandard when payment is delayed 90 days from due date.  The current standard is 180.  90 days is pretty much the global norm.
2. Mandate a general reserve of 1.25% of total assets (a provision for the unrated portion of banks' portfolios).  (I'm not sure of the exact translation here of "الجانب غير المصنف في محافظ".  I believe this means for risks not recognized in specific provisions.  If anyone has a better translation or explanation, please post a comment).
3. Require that all borrowers (individuals, public sector, and private sector) be classified into one of five categories: Performing (Normal) Loans, Watch (Under Review) Loans, Substandard Loans, Doubtful Loans, and Loss.  Covered firms will have to have detailed procedures for classification and monitoring of their loans.
4. Each of the five categories will also have its own "days overdue" rule as well as required (presumably minimum) provisions.
5. Implementation will be immediate upon Board approval and financial statements will have to be prepared accordingly.   He noted that last October the CBB advised banks and other covered firms to prepare.
6. Also during October, firms were advised to transfer any interest accrued but not collected to a special account "Suspended Interest".

Finally on another topic he noted that UAE banks had excess liquidity with the CB UAE.  And that not a single bank has taken any "emergency" liquidity funding.  You'll recall that after DW' November announcement of its intention to reschedule certain of its subsidiaries' debts, the CB UAE had said it would provide liquidity if required. 

The revised standards represents a big, if somewhat belated, step forward for the UAE.  My hope is that this information will released in the aggregate by the CBB  (system wide) and by individual banks about their own portfolios in their financials.

New Dubai Government Media Office

Established as WAM notes "to enhance channels of communications with the local, Arab and international media community and mobilise resources and potentials necessary for conveying an accurate image of events going on in Dubai and delivering Dubai message via clear, objective AND affective style at bar with the highest international recognised professional standards and practices."

I suspect that's "effective style at par".

However, since journalists (particularly those impudent Western ones) are known  for frequenting bars, this could be quite a savvy strategy.  Chat them up in the bar, buy a few drinks.  Maybe a way that space at the top of the Burj Khalifah could be put to good use.  The Tip Top Tap.  And perhaps a Nady Al-Iftar.  (Apologies to the Allerton, though the TTT has been closed for many a year now).

Or maybe that's an English law reference as in "If you print something negative, we'll see you in court".   They say that some in Dubai see Singapore as their model.

Anyways, hopefully, the new office's press releases will be a bit more carefully crafted.  Or they'll provide WAM with better English translations.

Here at SAM we're filing this in multiple files as the tags indicate.

The two most important are:

1. "Лучше поздно чем никогда" Of the two this one is the most important.   One should learn from one's mistakes.  And it's never too later to start.  Especially in correcting one's mistakes in one's own blog!
   
2. Politically correct.  All the news "that's fit to print" fits the government line.  It is important to correct all that inaccurate press reportage out there.
   

Abu Dhabi Islamic Bank Signs with Emcredit

Emcredit is the UAE's first government backed credit bureau founded in 2006.

Here's the official announcement that ADIB has signed up for Emcredit's services.

Some interesting footnotes to that story:

1. ADIB announced that it had signed up for Emcredit's services today.  (Small note it is 2009, three years after the founding of Emcredit).  
2. ADIB is the first Abu Dhabi bank to have signed up.
   

Let's file this news item in our "Лучше поздно чем никогда" file with the comment that when lending it's a good idea to use all credit tools at one's disposal. 

Otherwise, it's like having a building without fire alarms and sprinklers.  And one really doesn't have to wait for a fire to figure out that's not a particularly bright idea.  There is abundant pre-existing evidence.  Just coincidentally as there is with extensions of credit.

Property Sector to Build on Past Mistakes (UAE)

Picture Copyright The National Newspaper Abu Dhabi

This probably consists of piling on, but I just couldn't resist quoting this headline from The National Newspaper in Abu Dhabi. 

And this absolutely delightful quote:

“A large number of brokers have left and the same with developers. There’s been a lot of correction. Going forward, you’ll have a much maturer market. People are now aware of the risks.”

Usually, it's considered better form to be aware of the risks before the project heads south.  But as those rich visitors from up North say, "Лучше поздно чем никогда".

Administrative Consolidation in Dubai Government?

Лучше поздно чем никогда

The GulfNews reports.

UAE Central Bank Implements Basel II

Лучше поздно чем никогда

Article here.