The Central Bank of the UAE has said it will offer additional liquidity to local and international banks in the country in a move intended to show support for the domestic banking system in the wake of the announcement that Dubai World is asking creditors for a repayment standstill.

The central bank said in a statement that it “stands behind” local lenders. It also said it would be “making available to them a special additional liquidity facility linked to their current accounts at the central bank”.

The facility will be offered at 50 basis points above the three month emirates interbank offered rate.

The move was intended to provide banks with some form of support in the wake of a crisis of confidence as Dubai World seeks to halt repayments for six months on around $25bn of debt.