1991-07-10 15:39 MONETARY AFFAIRS BRANCH.
852 865 6146 F.03
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3.
We took the opportunity 10 hod discussions with the Government of Abu Dhabi, which through its shareholding in the parent is effectively the ultimate majority shareholder of the Bank, on the question of financial support for the Bank. The Government of Abu Dhabi had, for the purposes of the Bank's 1990 accounts, provided a Letter of Comfort which confirmed their intention to provide the financial support required to enable the Bank to continue trading for the foreseeable future. The Commissioner wished to have this support reaffirmed and indeed strengthened in the changed circumstances. A representative of the Commissioner's Office few to Abu Dhabi to hold discussions over the weekend with the Government of Abu Dhabi. However, it became clear on Sunday, 7 July, that the Government of Abu Dhabi was unwilling to provide the necessary financial backing; to the Bank.
4.
During the weekend it also became clear that the Bank's ability to conduct its business could be affected by the problems elsewhere in the Group. In the absence of support from the najority shareholder, and given that a disorderly withdrawal of cash could not be ruled out, the Commissioner of Banking instructed the Bank not to open for business from Monday, 8 July, unti further notice. He also assumed control of the Bank. Restrictions were placed on the Bank's business to freeze deposits and prevent the movement of funds out of the Bank in order to safeguard the interest of depositors. There are at present some 40,000 depositors, whose deposits total $11 billion, of which $4 billion is pledged as collateral against 1ɔans.
15.
It has been
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