Mashreq insists exposure to Saad fiasco "not significant"

Mashreq insists exposure to Saad fiasco “not significant”

Dubai-based Mashreq Bank announced it has taken legal action to protect its interests…

June 21, 2009 12:00 by Dana El Baltaji

Dubai-based Mashreq Bank announced it has taken legal action to protect its interests due to issues with Saudi clients, but insists that its loss is “not significant,” the bank revealed in a statement on Saturday.

“We appreciate that all defaults are of concern. However, the amounts involved are not significant as evidenced by the strength and trading position of the bank as reported in our Q1 results,” John Iossifidis, Mashreq’s head of international banking, said in the statement.

A number of banks in the region are expected to report significant losses due to exposure to troubled Saudi-based firms Saad Group and Ahmad Hamad Al Gosaibi Group & Brothers (AHAB).

“Mashreq is aware of a number of problems faced by Saudi-based clients and has taken legal action to protect its interests when appropriate and is actively working with such clients, their advisors, regulators and other banks in an effort to resolve the matters,” he added.