The UAE began enforcing a new Eibor system in April
The interest rates charged by the Emirates Inter-Bank Offered Rate (Eibor) have hit new highs, according to new statistics from the UAE Central Bank.
According to the UAECB, the six-month EIBOR recorded a 47 percent increase by November 27, 2018 as compared to the same time period in 2017, while the one-year EIBOR rose 33 percent over the same time period. Other terms increased at various levels.
In the meantime, loan interest rates were found to range between 4.2 and 7 percent, and reached 2 percent on one-year deposits. In a statement, the Central Bank noted that industry reports indicate a steady demand for loans despite high interest rates, with retail loans accounting for the largest share of provided credit.
The new hikes came after the UAECB began to enforce a new Eibor system in mid-April, under which the bank stopped acting as the calculating agent of Eibor and assigned the role to Thomson Reuters.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.