Abu Dhabi funds Dubai to pay Nakheel’s debt
The Abu Dhabi government has said that it is...
December 14, 2009 8:12 by Aarti Nagraj
The Abu Dhabi government has said that it is giving $10 billion to the Dubai government to help repay Nakheel’s $4.1 billion Islamic bond maturing today.
“Specifically, 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,” Sheikh Ahmad Bin Saeed al-Maktoum, chairman of the Dubai Supreme Fiscal Committee said in a statement.
“The remaining funds would also provide for interest expenses and company working capital through April 30, 2010,” the statement added.
“We are here today to reassure investors, financial and trade creditors, employees, and our citizens that our government will act at all times in accordance with market principles and internationally accepted business practices,” he said, adding, “Dubai is, and will continue to be, a strong and vibrant global financial center. Our best days are yet to come.”