ABU DHABI: The UAE government will further discuss its plan to introduce a law allowing public debt issues at the federal level and feels no pressure to issue bonds despite a budget deficit, Minister of State for Financial Affairs Obaid Humaid Al Tayer said yesterday.

"We are in no need to finance anything. We will be able to bridge the budget gap with our resources," he said.

He added discussions were likely to resume after the summer period.

The top advisory council passed the public debt bill in December 2010 to establish a debt market in the world's third-largest oil exporter.

It is awaiting cabinet approval and the presidential signature to become law.

A ministry official said in February he expected the first federal sovereign bond issue to be around $1 billion and would take place after the bill was approved.

Federal government bonds would be issued at intervals to help finance infrastructure projects.

The ministry has shifted expectations for the timing of its bond issuance.

In June 2011, the minister said the UAE might issue the first federal bond by the end of 2012, with the bill then expected to be signed in the summer of 2011.

The central bank governor earlier said the UAE, rated Aa2 by Moody's, needed to double efforts to create a market for government and corporate bonds as it lacked sufficient government debt instruments.