03/25/2010, 00.00
UNITED ARAB EMIRATES
Send to a friend

Dubai govt to inject US$ 9.5 billion to reduce Dubai World and Nakheel debt

New funds come partly from Abu Dhabi. Debt restructuring will leave creditors waiting seven to eight years before getting their money back. News boosts Dubai stock exchange, up 4.3 per cent.
Dubai (AsiaNews/Agencies) – The Government of Dubai will inject “significant financial resources” into Dubai World and its property unity Nakheel PJSC, US$ 1.5 billion for the former and US$ 8 billion for the latter. Funding comes from US$ 5.7 billion left from the loan previously made available by the Government of Abu Dhabi.

Back in November, Dubai authorities shook financial markets when it asked Dubai World creditors for a six-month moratorium on debt repayment. The Dubai government owns Dubai World, whose accumulated debt stood at US$ 59 billion, 75 per cent of its total debt.

In previous years, Dubai raised US$ 80 billion in loans to fund its real estate boom, turning the emirate’s beaches into a financial hub and one of the region’s foremost tourist resorts.

However, the 2008 recession saw the collapse of property values by 50 to 70 per cent.

At least 90 banks have outstanding loans with Dubai World, which has responded to the crisis with a restructuring plan that would see its debt repaid over a seven to eight years period.

News that Dubai World would get new funds pushed up the Dubai stock exchange by 4.3 per cent.

TAGs
Send to a friend
Printable version
CLOSE X
See also
Dubai World announces deal with creditors
10/09/2010
Dubai and Abu Dhabi stock markets down again
01/12/2009
Emir of Abu Dhabi to buy Dubai for US$ 80 billion
27/11/2009
Abu Dhabi’s sway over Dubai increasing at Tehran's expense
17/12/2009
Three days of mourning for Abu Dhabi sheikh
31/03/2010


Newsletter

Subscribe to Asia News updates or change your preferences

Subscribe now
“L’Asia: ecco il nostro comune compito per il terzo millennio!” - Giovanni Paolo II, da “Alzatevi, andiamo”