The worst of the bad debt crisis that hit SMEs is over but loan growth could remain subdued for the remainder of 2016, said a UAE bank chief.
Small businesses and individuals avoiding debt could lead to a drop in growth to single digits after a 10 percent gain in 2015, according to RAKBank chief executive Peter England.
"It appears we've hit the bottom and that things are starting to improve," said England at a conference in Dubai on Monday, reported The National.
"There’s no question, however, it’s a challenging time. We've been very exposed to the small business market and the small business market has been extremely challenging over the past 12 months. We are, though, seeing some signs of improvement."
The financial health of businesses and their ability to pay back debt is improving as the amount of money set aside by banks to pay bad debt is reducing, said the report.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.
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