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UAE imposes no limit on credit card rates

Khalil Fouladhi, chairman of the UAE central bank has said the board of directors has decided to not impose any limit on credit card rates, following a meeting with the country's 23 national banks and 28 foreign units to discuss credit card fees, Emirates 24-7 has reported. "Frankly speaking, the Central Bank has no plans to issue any new legislation on credit cards following our meeting with banks…we found that these banks shoulder a big risk in loans to credit cards," Fouladhi said. "We have carried out a study and found that rates on credit cards in the UAE are the highest in the region…but the Central Bank has taken into consideration the country's demographic structure, which is different from many other countries…this structure increases risks to banks," he added.