Wednesday 25 February 2009

Dubai bond not asset-backed, should be enough -official

Dubai's $20 billion bond programme is not backed by assets but secured by the government of the emirate and should be enough even in the worst case scenario, a Dubai government official said on Wednesday.

The Dubai finance department official told reporters that it had received great interest in the second $10 billion tranche of the programme.

The money would be used to help companies refinance their debt and a fund to support small businesses was also being considered. Property-related firms were likely to receive support.

"Companies might face difficulties in refinancing. Times are challenging ... now it is up to us to protect the major players in our economy," Nasser al-Shaikh said.

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