DUBAI, March 20 (Reuters) - The United Arab Emirates’ economy ministry reduced the debt of struggling Islamic mortgage lender Amlak by 4 billion dirhams ($1.09 billion), it said on its website on Tuesday. (www.economy.gov.ae)
Economy Minister Sultan bin Saeed al-Mansouri said a ministerial committee set up by the government to resolve Amlak’s problems succeeded in reducing the debt burden.
The UAE government had said in November 2008 it intended to merge Tamweel with rival Islamic mortgage lender Amlak after the two firms were hard hit by Dubai’s real estate collapse. Amlak shares have not traded on the Dubai bourse since then. The ministry said resumption of trading in the stock will take more time.
Dubai Islamic Bank raised its stake in Tamweel to 58.25 percent in September 2010, effectively rendering the mortgage lender a subsidiary of the bank. ($1 = 3.6730 UAE dirhams) (Reporting by Martina Fuchs; Editing by Dinesh Nair)