The UAE Central seeks advice to solve the problems of the Emirates Exchange Company

The UAE central bank has appointed a consultant to help solve debt and operating problems in one of the largest money transfer companies in the Middle East, the UAE Exchange, according to a Bloomberg report.

UAE Exchange is a company established in the UAE in 1980, and its headquarters are located in Abu Dhabi, and it works in transferring money, foreign exchange and payments, and serving retail clients and commercial companies, according to its location.

Bloomberg quoted sources requesting anonymity that Alvarez and Mursal Holding are advising the UAE central bank regarding the management of the Emirates Exchange Company.

And last month, the regulator took a rare step to take control of the company's operations in the UAE, as the parent company of UAE-listed UAE Exchange, Finablr Plc, is preparing for possible bankruptcy.

Emirates Exchange plays a major role in the country, as it is the largest money transfer company in an economy that hosts millions of expatriate workers who send their salaries to their countries. It is also one of the largest companies in the UAE and has thousands of employees.

People familiar with the matter said earlier this week that the company, which was founded by Indian businessman Pavaguthu Raghuram Shetty, had defaulted on foreign exchange loans by about $ 300 million.

bog down
The sources said that the lenders who arranged the facilities - including Barclays PLC, Goldman Sachs Group, GB Morgan Chase and Company and Commercial Bank of Dubai - were not repaid due to the growing problems surrounding Finapler.

Venable Inc. has warned that its board of directors cannot accurately assess its financial position, and its CEO has stepped down. The sources said that while the role of Alvarez and Mursal is currently focused on the Emirates Exchange Company, it can be expanded later.

According to a Bloomberg report, a representative of the UAE Central Bank did not respond to requests for comment on the matter, and Feinabler referred the inquiries to Emirates Exchange, which declined to comment, and Alvarez's representative declined to send the comment.

The UAE central bank regulates exchange and transfer operations in the country, and also supervises commercial lenders in the country, many of whom are stuck in what the Bloomberg Report called the "scandal" associated with Fenapler and NMC Health Plc to operate hospitals, which is also its foundations Shetty.

Damages
The United Arab Emirates appointed a new governor for its central bank this week, and it chose a former chief of its largest lender to take the lead, while the Corona virus affected the local economy significantly. It appointed Abdul Hamid Saeed, who was previously in charge of First Abu Dhabi Bank, to succeed Mubarak Al-Mansouri, who had been the governor of the Central Bank since 2014.

Saeed comes at a time when the central bank is leading efforts in the Gulf state to compensate for the economic damage caused by the outbreak of the Corona virus. To date, the UAE has pledged to offer a package totaling approximately $ 34 billion, to support the country's banking sector.