UAE pledges its support for debt-hit Dubai
By Rania Oteify and Rachna Uppal |
March 10, 2010, Wednesday
|
Print Edition
Print Edition
THE United Arab Emirates pledged its support for Dubai yesterday but said the emirate had yet to ask for federal help.
The UAE finance minister said the federal government would support the emirate as it negotiates a plan to restructure US$26 billion in debt and said he expected a deal to be finalized soon.
State-owned conglomerate Dubai World is holding informal talks with major creditors, which include HSBC and Standard Chartered, in London this week as it finalizes a deal.
Asked whether the federal government would support Dubai, Sheikh Hamdan bin Rashid al Maktoum said: "Of course. Dubai is part of the federation." Sheikh Hamdan, who is also deputy ruler of Dubai, said the emirate had not yet approached the federal government for aid.
"The federation hasn't reached that far, but the Emirates are one entity and things will be resolved soon, God willing," he told reporters.
Dubai's stock market was up for a fourth day yesterday, while Abu Dhabi's was up for a third on hopes a debt deal might come soon.
Abu Dhabi, the wealthiest and largest of the seven members of the UAE federation, bailed Dubai out in December and has an active role behind the scenes in current debt negotiations.
But the emirate, a pivotal player at the federal level, has been pointedly silent on its plans regarding Dubai's debt restructuring. Analysts expect it to help again but in a modest way, and in exchange for more centralised control.
Bankers familiar with the matter said the size of any financial help from the Abu Dhabi government would determine the size of the cut creditors would have to take.
The UAE finance minister said the federal government would support the emirate as it negotiates a plan to restructure US$26 billion in debt and said he expected a deal to be finalized soon.
State-owned conglomerate Dubai World is holding informal talks with major creditors, which include HSBC and Standard Chartered, in London this week as it finalizes a deal.
Asked whether the federal government would support Dubai, Sheikh Hamdan bin Rashid al Maktoum said: "Of course. Dubai is part of the federation." Sheikh Hamdan, who is also deputy ruler of Dubai, said the emirate had not yet approached the federal government for aid.
"The federation hasn't reached that far, but the Emirates are one entity and things will be resolved soon, God willing," he told reporters.
Dubai's stock market was up for a fourth day yesterday, while Abu Dhabi's was up for a third on hopes a debt deal might come soon.
Abu Dhabi, the wealthiest and largest of the seven members of the UAE federation, bailed Dubai out in December and has an active role behind the scenes in current debt negotiations.
But the emirate, a pivotal player at the federal level, has been pointedly silent on its plans regarding Dubai's debt restructuring. Analysts expect it to help again but in a modest way, and in exchange for more centralised control.
Bankers familiar with the matter said the size of any financial help from the Abu Dhabi government would determine the size of the cut creditors would have to take.
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