(Bloomberg) –United Arab Emirates banks’ bad-loan ratio climbed to the highest level in more than five years as falling property prices and a sluggish economy took their toll on businesses.
That’s prompted some lenders in the second-biggest Arab economy to ease payment terms by extending loan maturities and lowering interest rate.
The ratio, which hit 6.4% at the end of September, compares with 1.7% in Saudi Arabia and 1.9% in Qatar at the end of June, according to data compiled by Bloomberg Intelligence.
