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UAE Central Bank to launch overnight lending facility

April 9, 2014 1:30 am

The UAE central bank is set to roll out a mechanism on April 15 to let the country’s banks borrow funds from it overnight to help with liquidity management, Reuters has reported. The Interim Marginal Lending Facility (IMLF) will allow lenders in the Gulf country to use certain assets as collateral to swap for one-day loans, according to an April 3 letter to banks. A Shari’ah-compliant version of the IMLF for Islamic banks in the UAE will be launched “in the coming weeks”, the letter added.