ID :
93998
Wed, 12/09/2009 - 15:12
Auther :
Shortlink :
https://oananews.org//node/93998
The shortlink copeid
Dubai World has assets, income to meet obligations
Dubai, Dec 9, 2009 (WAM) - Dubai World has assets and income to meet debt obligations, Abdulrahman Al Saleh, Director-General of Dubai's Department of Finance, told Al Arabiya TV channel. Most of Dubai World's lenders are committed for the long term, he said according to a report in "Emirates Business."
He said it was premature to talk about cash injections into Nakheel. "The [Dubai Financial Support] Fund… has given Dh9 billion (US$2.45bn) to Nakheel to meet its obligations." In May, Nakheel's chief executive said it had received funds from DFSF.
Al Saleh said six months are not enough to restructure a conglomerate like Dubai World. "Six months would be too short for a full restructuring. The six-month period would focus on creditors, contractors and so on."
He said the Dubai Government supports the group "as an owner". "The government will provide backing as an owner… we'd like to emphasise the distinction between guaranteeing and backing. The firm has been receiving large backing from the government since its inception," he said.
He did not rule out using the land bank of Nakheel, the group's developer, so long as local law permitted, but said the issue could only be decided through talks.
Al Saleh reassured investors that the government would be able to tap debt markets in the future. "We believe yes… the media exaggerated the situation ... Dubai is capable of meeting its sovereign debt," he said when asked if the debt market would accommodate any borrowing requests by Dubai.
He said it was premature to talk about cash injections into Nakheel. "The [Dubai Financial Support] Fund… has given Dh9 billion (US$2.45bn) to Nakheel to meet its obligations." In May, Nakheel's chief executive said it had received funds from DFSF.
Al Saleh said six months are not enough to restructure a conglomerate like Dubai World. "Six months would be too short for a full restructuring. The six-month period would focus on creditors, contractors and so on."
He said the Dubai Government supports the group "as an owner". "The government will provide backing as an owner… we'd like to emphasise the distinction between guaranteeing and backing. The firm has been receiving large backing from the government since its inception," he said.
He did not rule out using the land bank of Nakheel, the group's developer, so long as local law permitted, but said the issue could only be decided through talks.
Al Saleh reassured investors that the government would be able to tap debt markets in the future. "We believe yes… the media exaggerated the situation ... Dubai is capable of meeting its sovereign debt," he said when asked if the debt market would accommodate any borrowing requests by Dubai.
