Friday 1 April 2011

IMF warns Dubai over $31bn debt - The National

Dubai faces "significant rollover risks" from having to repay US$31 billion (Dh113.85bn) of debt this year and next, the IMF has warned.

The emirate would probably have to pay higher borrowing costs because of the absence of a well-defined and transparent strategy to address financing for government-related companies, it said.

"With an estimated US$31bn of debt due in 2011-2012, of which at least $5bn is in the real estate sector, Dubai continues to face significant rollover risks in the short term," the IMF, based in Washington, said yesterday, following a mission to the UAE which concluded last month.

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