From: "Sultan Bin Sulayem" <1 To: "Jeffrey Epstein" <[email protected]> Date: Sun, 29 Nov 2009 17:07:04 +0000 lane-Images: BBC_NEWS Dubai banks given extra liquidity The central bank of the United Arab Emirates (UAE) has said it is setting up a facility to provide banks with extra liquidity. The news comes days after the state-owned Dubai World said it would ask for an extension on repaying its debts, sending world stock markets tumbling. The liquidity will be available to all UAE banks as well as foreign banks operating in the UAE. Meanwhile, Abu Dhabi says it will "pick and choose" how to assist Dubai. "We will look at Dubai's commitments and approach them on a case-by-case basis," an Abu Dhabi government official said on Saturday. "It does not mean that Abu Dhabi will underwrite all of their debts," he added. The announcement from the central bank came the day before markets in the Middle East reopen after the Eid holiday. "[The] central bank has issued a notice to UAE banks and branches of foreign banks operating in the UAE, making available to them a special additional liquidity facility linked to their current accounts at the central bank," it said in a statement. The bank added that the banking system in the UAE was more sound and liquid than a year ago. Story from BBC NEWS: Bloomberg Banks will be able to use a special facility tied to their current accounts that can be accessed at a cost of 50 basis points above the three-month local benchmark interest rate, the Abu Dhabi-based regulator said in an e-mailed statement today. There are 100 basis points in a percentage point. "This is very a reassuring move by the central bank to limit the risk of any run on Dubai-based banks," said John Sfakianakis chief economist at Banque Saudi Fransi in Riyadh. It will alleviate any "liquidity concerns by foreign banks about the banking system, mostly those based in Dubai." Dubai World a state-owned holding company struggling with $59 billion