Rollover Likely as Dubai’s $10 Billion Debt Deadline Looms - Middle East Real Time - WSJ:
"A deadline is fast approaching for Dubai to repay $10 billion of aid it received in the midst of the financial crisis five years ago, but analysts expect the due date to be extended this week without much fuss.
Dubai, one of seven emirates that make up the United Arab Emirates, got the money in February 2009 in the form of bonds bought by the U.A.E. central bank. The aid aimed to keep the emirate liquid amid a dive in its real estate market that wiped 50% off of home values and threw some of its biggest state-owned companies into financial distress.
Dubai got another $10 billion injection from the Abu Dhabi government and a couple of Abu Dhabi banks that November when Dubai World, a big government-owned conglomerate, entered debt restructuring talks.
“We believe much of the $10 billion owed to the UAE central bank maturing in February will likely to be rolled over,” said Monica Malik, chief economist at EFG Hermes.
Her view echoes that of analysts at Bank of America Merrill Lynch and Barclays, who expect the debt maturities to be quietly extended. A partial payment may also be on the cards."
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