Abu Dhabi Govt injects $4.3 bn to 5 banks

NICOSIA: The Government of Abu Dhabi on Wednesday announced that it has decided to implement an action plan under which it will inject $ 4.36 billion additional capital into the following financial institutions in the emirate: Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, First Gulf Bank, National Bank of Abu Dhabi and Union National Bank.

The move is aimed at strengthening confidence in the financial sector which has been shaken as a result of the world-wide financial crisis.

The Government of Abu Dhabi announced that it would buy bonds with no maturity date from five banks as a precautionary step to enhance confidence into the emirate's banking sector.

It is recalled that last November Barclays announced plans to raise $ 11.8 billion, by selling shares to Abu Dhabi and Qatar as a means of meeting the new capital requirements imposed by the British government on banks which were seeking government support.

Under the plan announced by Barclays Sheikh Mansour bin Zayed al-Nahyan, a member of the royal family of Abu Dhabi and chairman of the International Petroleum Investment Company, would own up to 16 per cent of Barclays.