THE Dubai government has said it lent Dubai World more than 6,2bn in the past 12 months. Dubai World is the state- owned company that is in talks to reschedule 22bn of debt.
“The money is in the form of a loan, on commercial terms, and the Dubai Support Fund hasn’t taken an equity stake in the company or taken any assets from the group,” a government spokeswoman said by phone , declining to be identified, in line with government policy.
The Abu Dhabi-based National newspaper reported the figure on Friday.
Dubai World failed to present a restructuring offer to lenders in December and declined to say when a deal could be struck.
Dubai World has extensive investments in Africa through Dubai World Africa, including in SA, Rwanda, Comoros, Mozambique, Senegal and Zimbabwe.
Six months may be enough time to reach an agreement, Henry Azzam, Deutsche Bank’s regional CEO, said last week at the opening of the bank’s Abu Dhabi branch.
Morgan Stanley said in December debt restructuring by Dubai state-run companies could reach 46,7bn.
There was 4,9bn left in the Dubai Support Fund, set up last year to support the emirate’s state-owned companies, which may be available to Dubai World if it reached a standstill agreement with creditors, the spokeswoman said.
Dubai stocks and bonds fell in November after the government said Dubai World would seek to delay payments to creditors until at least May 30.
The United Arab Emirates’ central bank bought 10b n in Dubai government bonds last year and the emirate received a further 10b n from the Abu Dhabi government and two Abu Dhabi-based banks
