Monday 17 March 2014

fastFT: Dubai's $20bn debt deal lifts stock market - FT.com

fastFT: Market-moving news and views, 24 hours a day - FT.com:



"Dubai's reworked $20bn bailout deal with big brother emirate Abu Dhabi has rekindled its stock market rally, as the benchmark index heads close to the six-year high it touched last month.



The Arab world's leading commercial entrepĂ´t over the weekend reached an agreement with the central bank of the United Arab Emirates and its capital Abu Dhabi to refinance at preferential rates a $20bn bailout it received after its property market imploded in 2009.



The bond maturities were extended by five years at an interest rate of just 1 per cent, below the 4 per cent agreed in 2009 when Abu Dhabi rode to its neighbouring emirate's rescue. The deal removes about a quarter of the $80bn of debt coming due by 2017, according to IMF estimates."



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