Your loans in UAE may get to be more expensive

By Eudore R. Chand

Eibor hitting new highs

ABU DHABI 29 November 2018: The interest rates charged by the Emirates Inter-Bank Offered Rate (Eibor) have continued to hit new highs across all terms, according to UAE Central Bank figures.

The six-month Eibor booked a significant 47 per cent rise by November 27, 2018, as compared to the end of 2017, while the one-year rate climbed by 33 per cent during the same period, with other terms increasing at varying levels.

In the meantime, loan interest rates ranged between 4.2 – 7.00 per cent and reached 2 per cent on one-year deposits, with industry reports indicating a steady demand for loans despite high interest rates, with retail loans accounting for the larger share of provided credit, said Wam.

The new hikes come after the UAECB started to enforce the new Eibor system effective mid-April 2018, under which the bank stopped acting as the calculating agent of Eibor, assigning this role to Thomson Reuters Ltd , a new move confirmed by the bank as going in conformity with best international practices in terms of transparency.

Dubai Gazette