The number of local banks that are not exposed to the debts of "Phoenix Commodities" specialized in agricultural trade, reached 13, according to official disclosures from these banks that were sent to the Dubai Financial Markets and Abu Dhabi Stock Markets, in which they confirmed that there are no exposures to date, while he stated Two banks have an exposure of approximately AED 129.8 million.
Abu Dhabi Commercial Banks, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Umm Al Quwain National, Ras Al Khaimah National and International Commercial, Dubai Islamic, Emirates Islamic, Ajman, Emirates Investment, Fujairah National, Investment Bank and Khaleeji Commercial Bank have disclosed that they have not been exposed to "Phoenix Commodities" to date.
Two banks, Mashreq and Emirates NBD, reported exposure of 43 million dirhams for the first and 86.8 million dirhams for the second respectively, to "Phoenix" Global, which is owned by the main company.
These disclosures came at the request of my financial market administrations in the country, after a news story published by Reuters recently quoted a document stating that the Phoenix Commodities BV, which is based in the Dubai Multi Commodities Center, is subject to liquidation after accumulating potential trading losses with more than 400 million dollars.
Reuters said that a document prepared by "Liquidator" made it clear that "Phoenix Commodities" specialized in trading of agricultural products, especially rice, in addition to coal and minerals, are subject to liquidation, after accumulating possible losses for trading in derivatives by more than 400 million dollars.
The document prepared by liquidation officials, according to "Reuters", that the company blamed the obligations on the fluctuation of the currency caused by the emergence of the "Corona" virus, which affected the derivatives linked to the dollar and other currencies.