In a dramatic turn of events the chief executive of Dubai-based Mashreq Bank said on Monday there are "signs" the bank may reach a possible debt settlement with financially troubled Saudi conglomerate Ahmad Hamad Algosaibi & Bros. Abdulaziz Al Ghurair said: "I think there are signs of a settlement in this direction." He was speaking to Dow Jones at a conference in Kuwait City when asked about the issue. "They might be willing to offer settlements and offers."
Mashreq Bank has been locked in a bitter legal dispute with AHAB and said in September its total exposure to the Saudi family business and related parties amounts to about $400m. Last month representatives of Algosaibi held discussions with the Central Bank of the United Arab Emirates, reportedly to reach a settlement with UAE lenders.
When asked whether Mashreq had taken enough provisions to cover the bad loans, Al Ghurair said: "I think so."
The dispute has uncovered deficiencies in standards of corporate governance in the
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