ABN Amro Scales Back Diamond Lending

RAPAPORT... ABN Amro is terminating its diamond and jewelry lendingbusiness in the US and the United Arab Emirates (UAE), the Amsterdam-based banksaid.The lender decided to end its services to the US industrydue to its "very small portfolio," a spokesperson for the company said Monday.The bank will also close its office in Dubai for diamond and jewelry clients aspart of a move to end its overall presence in the UAE, the spokesperson added. The group made the decision on May 14, and aims to wind down the New York office by the end of 2018, before closing the Dubai activities at a later stage. "We are in close contact with our diamond and jewelryclients in these locations to find alternative solutions," the Dutch bank continued."ABN Amro will continue to manage its diamond and jewelry client portfolio inBelgium and Hong Kong, with a focus on existing clients, and work tofurther improve the risk profile of those portfolios." ABN Amro has reduced its exposure to the diamond industry inrecent years, it said. The company recorded $48.1 million (EUR 41 million) ofimpairments in the first quarter due to "challenges" in the sector, it noted ina presentation earlier this month. "The diamonds and jewelry portfolio has declined overthe years, and continues to face challenging market circumstances," the lenderstated.