Dubai will support Dubai World’s debt restructuring with $9.5bn as the state-owned holding company asks creditors to wait up to eight years to get all their money back.
The additional funds double to $20bn the amount the government paid to the emirate’s holding company after it said in November it would seek to delay repaying debt until May. That announcement sparked a plunge in developing-nation stocks and doubled the cost to protect against a default by Dubai.
“Our financial support demonstrates our commitment to finding a fair and equitable solution for all stakeholders in the wider interest of the economy,” the emirate’s Supreme Fiscal Committee chairman, Sheikh Ahmed Bin Saeed Al Maktoum, said in an e-mailed statement today.
bloomberg.com/ The National