UAE's bank deposit guarantee will last three years

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DIRHAM DECISION: The UAE's decision to guarantee bank deposits will last for three years. (Getty Images)

The UAE's decision to guarantee bank deposits will last for three years and also cover foreign banks with core operations in the Gulf Arab commercial hub.

The UAE government promised on Sunday to guarantee bank deposits and protect national banks from credit risks, the official WAM news agency said on Monday.

"We are determined to protect our financial and banking system out of keenness to preserve the interests of our country and people," Ruler of Dubai Sheikh Mohammed had previously told a cabinet meeting on Sunday.

The UAE federal government will ensure that no UAE national bank will be exposed to credit risks, guarantee deposits and savings in all national banks, guarantee all inter-bank lending operations between banks operating in the UAE and inject sufficient liquidity in the financial system if and when necessary. (Reuters)

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