The central bank, in a statement issued in Abu Dhabi yesterday, said 13 banks operating in the UAE, including the four local banks, had suffered losses for extending loans worth Rs 479 crore to the group of companies.

Other liabilities, credits and guarantees involved were in the process of being calculated and all banks had reserves and provisions necessary to cover the net loss after liquidating assets and guarantees available with them, the central bank said.

Meanwhile, Patel told the Khaleej Times from London that he was holding talks with the representatives of the banks (which include some banks in Bahrain too) involved and the matter would be sorted out shortly.

He claimed that the discussions have gone well and that there are no creditors inthe sense that somebody had lost money. He blamed the crises on two european customers who according to him defaulted on payments.

He said management consultants have been engaged to work out details of package that would ensure resolution of the problem to the satisfaction of all parties concerned.

The central bank is convening a meeting to be attended by affected banks to decide measures needed to find out who is responsible for the losses.