United Arab Emirates’ banks will prefer higher interest rates to a government guarantee under Dubai World’s $24.9 billion debt restructuring plan, Mashreqbank PSC Chief Executive Officer Abdul Aziz al-Ghurair said.
Foreign lenders to state-owned Dubai World will prefer the option that includes the government guarantee and lower interest rates, al-Ghurair said in an interview to Al-Arabiya TV.
Dubai World announced Sept. 10 that creditors representing more than 99 percent of the value of its loans accepted the debt plan. The loans include $14.4 billion of bank debt, of which $4.4 billion will be repaid in five years and $10 billion in eight years. The remainder is owed to the government and will be converted into equity.
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