The government committee overseeing the overhaul of Amlak Finance has cut the company's debt by Dh4 billion (US$1.08bn) as attempts to clean up the after-effects of Dubai's debt crisis proceed.
The committee had succeeded in lowering the Islamic mortgage company's total debt "in coordination with the federal Government and the local parties concerned", said Sultan Al Mansouri, the Minister of Economy.
Amlak, alongside its rival Tamweel, funded much of Dubai's housing boom. However, their reliance on wholesale funding became apparent when credit markets froze in the autumn of 2008. Trading in the companies' shares stopped in November that year, after an aborted merger that had been floated by the Government.
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