Six local banks listed on the Abu Dhabi Securities Market have denied exposure to Phoenix Commodities, which specializes in agricultural trade.
According to disclosures published by the Abu Dhabi Securities Exchange website, the Abu Dhabi Commercial Bank Group stated that there is no exposure to this company to date, while Abu Dhabi Islamic Bank also said that there are no exposures on the same company.
Sharjah Islamic Bank said that it did not provide any funds for the company and there was no exposure to it.
The National Bank of Umm Al Quwain and Ras Al-Khaimah National and International Commercial both confirmed that there are no funds or exposure to the company.
The disclosures came after a news report published by Reuters recently, citing a document that the "Dubai Commodities PVT", which is based in the DMCC, is subject to liquidation after accumulating potential trading losses of more than $ 400 million.
Reuters said a document prepared by "Liquidator" reported that "Phoenix Commodities", which specialize in agricultural products, especially rice, in addition to coal and minerals, are subject to liquidation, after they accumulated potential losses of trading in derivatives by more than $ 400 million.
The document prepared by liquidation officials, according to Reuters, that the company blamed the obligations on the currency fluctuation caused by the emergence of the Corona virus, which affected the derivatives linked to the dollar and other currencies.