Abu Dhabi gives Dubai USD 10 bn to cover debt

The Dubai government said today neighbour Abu Dhabi has agreed to give USD 10 billion in emergency funds that will go toward paying debts owed by its Dubai World conglomerate.

It said USD 4.1 billion of the money will be used to pay off the debt from Dubai World’s Nakheel property division that are due today.

Announcing this, Sheikh Ahmad Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal Commitee, said the UAE central bank, based in Abu Dhabi, is also prepared to support local banks.

He said the remaining funds would be used for interest payments and working capital of Dubai World through April 30, 2010 on condition that the company successfully negotiates a standstill agreement with creditors as earlier announced.

Popularity: 1% [?]

Tags: Dubai crisis

Category: Stock-News