FINANCIAL NEWS

Dubai World details new debt deal

12 Sep 2010

(MENAFN) Dubai World said it will repay interest on loans to creditors and then the loans themselves in instalments, after the state owned conglomerate reached a formal deal to restructure almost $25 billion of debt, Reuters reported.

The restructuring agreement with over 99 percent of creditor banks will rebuild confidence in Dubai’s economy and marks a new start for the debt struck emirate.

While Dubai World’s agreement is seen as a positive step towards resolving the debt crisis, the announcement came just days after a unit of Dubai Holding said it would delay repayment on a $555 million loan, the second time it has failed to meet a repayment deadline.

Approval of the debt restructuring deal would also pave the way for fresh investment opportunities in Dubai, especially in infrastructure and construction, trade, transport, tourism and the financial sector.

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