UAE says new public debt law will make market more resilient, benchmark yield curve

DUBAI, Oct 15 (Reuters) - The United Arab Emirates central bank said on Monday that a new public debt law which was approved last week will create a more resilient financial market, benchmark the yield curve and provide more diversified sources of financing.

The bank’s watchdog also said the “law will mobilise additional domestic savings and attract capital inflows”, according to an emailed statement.

The UAE issued a law permitting the federal government to begin issuing sovereign debt, the finance ministry said on Saturday.

Banks operating in the country will be able to buy government bonds in UAE dirhams or foreign currencies, helping them manage their liquidity and comply with global Basel III regulatory requirements for banks, it said. (Reporting by Hadeel Al Sayegh Editing by Raissa Kasolowsky)