Dubai, 15th Oct. 2008 (WAM) -- A UAE daily paper called today the financial measures taken by the UAE government in light of the global credit crunch as bold, decisive and timely and demanded financiers to complement government move to restore market confidence.

Commenting editorially on the recent momentous steps taken by the government to handle the world financial crisis, the Dubai-based Gulf News said :'' At last, the world enjoyed a breather as governments took coordinated measures to contain the current global financial turmoil. The well-orchestrated steps have brought a halt - albeit temporarily - to the markets' nosedive of the past few days. For the common person, this comes as a much needed break from the mayhem.

''Perhaps this aspect was the immediate concern of the UAE Government when it took its momentous steps in reaction to the crisis. If anything, it reflects its attention to the current situation as much as its keenness to protect the interests of the country - encompassing all Emiratis as well as expatriates who are either living or working here.

''And it is for this reason that the government has labelled its handling of the current crisis as one that aims to protect the national interests. It was only a few days ago that the local markets caught up with the global fire that brought about the collapse and takeover of big international financial institutions and companies.

''The UAE Government's reaction to the crisis should be perceived, as its mantra was to act boldly and decisively. Inaction was simply not an option.

''First came the announcement by the UAE Central Bank of the injection of not less than Dh50 billion into the inter-bank market. Later, the bank went on to cut interest rates and the borrowing rate on its emergency facility, as a step following its national bank counterparts worldwide.

''Yet, knowing very well that markets still needed further confidence, President His Highness Shaikh Khalifa Bin Zayed Al Nahyan and His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, issued statements of assurance about the soundness of the local economy and the strength of the country's financial institutions.

''Second, a stronger step by the government to boost the economy was followed as the Cabinet approved a set of preventive measures that aims to protect the local economy. Accordingly, all national banks were given the assurance that all their deposits and savings are guaranteed by the government, in addition to inter-bank lending operations.

''But given that the global markets were still reeling under the pressure, the UAE markets also followed likewise, regardless of the fact that the Central Bank disclosed that over 70 per cent of local bank deposits were secure. It was not until further drastic decisions were taken by the UAE Government that the markets reacted positively.

''For one thing, Shaikh Mohammad ordered the allocation and the facilitation of a total of Dh70 billion to the banking sector. Furthermore, the government announced that all bank deposits, including foreign commercial banks that have significant retail operations in the country, would be offered the government's guarantee and protection.

''In addition, the Cabinet gave the green light to the market's watchdog, the Emirates Securities and Commodities Authority (ESCA), to ease restrictions on share buybacks in an effort to boost the stock market. Active roles''This brings us to a critical point as all the measures taken by the Government so far are meant to set the pace within the business environment. It means that other entities now must play an active and responsible role in order to sustain what the government's measures have been able to achieve thus far. Hence, the role of local institutions that are offered the opportunity to buy back their shares should be taken with full advantage.

''Also, the banks that have been given full protection should take the step of disclosing their stance, as financial institutions as well as their plans for the future. As a matter of fact, the government has lent all the needed tools for such entities to move towards restoring stability in the local market and ensuring the safety of the economy. The gloom and doom that dominated the UAE stock markets some days ago is a reminder of how such a crisis affects everyone and how the red screens going green ripple across all segments and sectors of society.

''And if the authorities have taken measures to assure nationals and expatriates here that all are one in facing the crisis, then so should other businesses and financial entities as well''.

Copyright Emirates News Agency (WAM) 2008.