Thursday 13 September 2012

Dubai’s creditors: playing chicken | beyondbrics

Sorting out Dubai Group’s $10bn debts was always going to be tougher than most negotiations over the emirate’s total $110 debt pile.

Now RBS, Commerzbank, Standard Bank and Commercial International Bank of Egypt have raised the stakes by launching arbitration proceedings in London, calling for immediate repayment of their loans after claiming two years of talks had failed.

RBS was co-chair of a group of partially-secured banks that made up $4.5bn of the $6bn owed to lenders. The remaining $4bn lies in inter-company loans with Dubai Group’s parent, Dubai Holding, owned by Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum.

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