Abu Dhabi and UAE Central Bank give $10b in support, Dubai Government authorises release of $4.1b which will be used to pay Nakheel\'s bond and expected to announce new legal framework.
Dubai Government has authorised the release of $4.1b which will be used to pay Nakheel’s sukuk.
A statement from the Dubai Financial Support Fund said that the government of Abu Dhabi and the UAE Central Bank had provided $10b in support.
Dubai Government is also expected to announce legal steps which will allow Dubai World to restructure completely.
The statement also added that the UAE Central Bank would provide support for local banks.
The news comes on the same day that Nakheel\'s $4 billion (Dh14.6 billion) sukuk had been due to mature. It had originally asked for a deferment on payment of the bond on November 25.
A statement from Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal Committee said: “The Government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World.
“As a first action for the new fund, the Government of Dubai has authorized $4.1 billion to be used to pay the sukuk obligations that are due today.\"
He added that the remaining funds will also \"provide for interest expenses and company working capital through April 30, 2010\" but only on the condition that Nakheel negotiates a standstill on it\'s future debt repayments. |
