ID :
94882
Tue, 12/15/2009 - 00:29
Auther :
Shortlink :
https://oananews.org//node/94882
The shortlink copeid
ABU DHABI EXTENDS US$10 BLN FUND TO DUBAI
BY MUIN ABDUL MAJID
DUBAI, Dec 14 (Bernama) -- The Abu Dhabi government has agreed to channel
US$10 billion to the Dubai Financial Support Fund that will be used to satisfy
a series of obligations on Dubai World.
A statement said the Dubai government had authorised the payment of US$4.1
billion, as an initial start, to pay "sukuk" (Islamic Bonds) obligations due
Monday.
The sukuk or Islamic bonds were issued by Nakheel, a Dubai-based property
developer, which is part of the heavily-indebted Dubai World conglomerate owned
by the government of Dubai.
The statement said the remaining funds would "provide for interest expenses
and company working capital through April 30, 2010".
This, it said, would be conditioned on "the company being successful
in negotiating a standstill as previously announced".
Dubai World, on Nov 25, sought a six-month freeze on the group's debt
repayments, making creditors edgy.
" The remainder of the funds will be used for the satisfaction of
obligations to existing trade creditors and contractors. Discussions with
affected contractors will begin in short order," the statement added.
Sheikh Ahmad Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal
Committee, said like other global financial centres, Dubai had faced recent
market challenges driven by global economic slowdown and severe real estate
market correction.
" Recently, Dubai World announced that it might not be able to commercially
support its obligations.
" Since that time, the government of Dubai has worked closely with the Abu
Dhabi government and the United Arab Emirates (UAE) Central Bank in addressing
and assessing the impact of Dubai World on the UAE economy, banking system and
investor confidence," he said.
Dubai World, through its subsidiaries, is behind several iconic projects in
Dubai like the Palm Jumeirah, a man-made island dotted with luxury villas and
hotels as well as the World Islands, an archipelago of islands shaped to
represent a map of the earth.
-- BERNAMA
DUBAI, Dec 14 (Bernama) -- The Abu Dhabi government has agreed to channel
US$10 billion to the Dubai Financial Support Fund that will be used to satisfy
a series of obligations on Dubai World.
A statement said the Dubai government had authorised the payment of US$4.1
billion, as an initial start, to pay "sukuk" (Islamic Bonds) obligations due
Monday.
The sukuk or Islamic bonds were issued by Nakheel, a Dubai-based property
developer, which is part of the heavily-indebted Dubai World conglomerate owned
by the government of Dubai.
The statement said the remaining funds would "provide for interest expenses
and company working capital through April 30, 2010".
This, it said, would be conditioned on "the company being successful
in negotiating a standstill as previously announced".
Dubai World, on Nov 25, sought a six-month freeze on the group's debt
repayments, making creditors edgy.
" The remainder of the funds will be used for the satisfaction of
obligations to existing trade creditors and contractors. Discussions with
affected contractors will begin in short order," the statement added.
Sheikh Ahmad Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal
Committee, said like other global financial centres, Dubai had faced recent
market challenges driven by global economic slowdown and severe real estate
market correction.
" Recently, Dubai World announced that it might not be able to commercially
support its obligations.
" Since that time, the government of Dubai has worked closely with the Abu
Dhabi government and the United Arab Emirates (UAE) Central Bank in addressing
and assessing the impact of Dubai World on the UAE economy, banking system and
investor confidence," he said.
Dubai World, through its subsidiaries, is behind several iconic projects in
Dubai like the Palm Jumeirah, a man-made island dotted with luxury villas and
hotels as well as the World Islands, an archipelago of islands shaped to
represent a map of the earth.
-- BERNAMA
