The United Arab Emirates' central bank set up new additional liquidity facility for commercial banks, it said on Sunday.
"Central Bank has issued a notice to UAE banks and branches of foreign banks operating in the UAE, making available to them a special additional liquidity facility linked to their current accounts at the central bank, at the rate of 50 basis points above the 3 months EIBOR (Emirates interbank offered rate)," it said in a statement.
The central bank also said it stood behind UAE banks and branches of foreign banks, adding the Gulf Arab country's banking system was more sound and liquid than a year ago.
Meanwhile, banks who lent over $30 billion to Dubai World, the debt-laden state investment group, plan to appoint auditors KPMG to represent them in talks over recovering their money, the Independent on Sunday newspaper reported.
