ENBD Pays Back Bailout Funds
Dubai's largest financial institution, Emirates NBD has repaid for April the amount of 3 billion UAE Dinars or US$816.8 million of bailout funds from the UAE government. The funds were received by the bank in the wake of the global financial crisis.
The UAE finance ministry had infused a total of 7 billion UAE dinars into the banking industry to support its balance sheets after Lehman Brothers collapsed in September 2008. This had triggered the crash of much of the world's financial systems.
Emirates NBD had received a total of 12.6 billion UAE dinars and last January it had announced that it was preparing to pay the debt. The debt was later converted into bonds back in 2009 as the instrument's value had declined because of cheaper access to finances from the international market had become more cost effective.
ENBD is not the first bank to repay its bailout funds and these include the National Bank of Abu Dhabi and the First Gulf Bank.