No 'significant' rise in mortgage defaults, says Tamweel |
|
Islamic mortgage provider TamweelTamweel
has not seen any "significant" increase in number of defaults since the beginning of the year, but expects to get a clear picture by May, a senior executive said."The number of defaults has not been significant. However, there has been some impact on us. We have to wait and see what happens by end of the first quarter. A clear picture will be available by May," he told Emirates Business on condition of anonymity.
Although the company is still issuing mortgages, it has not yet seen any foreclosures, he said, and refused to comment how the company's debt is being restructured, or on the status of its application to the UAE Central BankCentral Bank
for a banking licence. In February, AmlakAmlak
Finance's Chief Financial Officer Max Hamidi told Zawya Dow Jones that it expects to see defaults on mortgages this year. AmlakAmlak
has also applied for a banking licence.Earlier this month, the UAE Cabinet said it will evaluate options to restructure the two Islamic mortgage lenders and will finalise its recommendations soon.
A steering committee, headed by UAE Economy Minister Sultan Al Mansouri to make recommendations for the lenders, had completed its review. Late last year, AmlakAmlak
and TamweelTamweel
were merged with two Abu Dhabi-based banks Real Estate Bank and Emirates Industrial Bank as part of a consolidation plan.In February, Dubai announced a $20 billion (Dh73.4bn) government bond issue, half of which was bought by the UAE Central BankCentral Bank
to help state-linked companies meet debt obligations. The government said it will not use money from the bond sale to help the two mortgage lenders.Home finance
Standard CharteredStandard Chartered
has started Shariah-compliant home finance products in the UAE to tap demand from property buyers. Standard CharteredStandard Chartered
Saadiq will provide home financing for as much as Dh10 million for a period of 25 years, the bank said.By Parag Deulgaonkar
© Emirates Business 24/7 2009
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