Monday, 30 March 2009

Dubai outlines plan to escape doldrums

Dubai will this week outline borrowing terms to government-related companies in need of assistance as it seeks to inject much of its $10bn borrowing into the domestic economy to help lift the emirate from its economic malaise.

The government is about to appoint a financial adviser to hammer out loan terms for companies wanting credit lines from the $10bn loaned in February by the United Arab Emirates central bank to the city-state, which is suffering in the global crisis.

The first half of a $20bn government bond programme aims to help the emirate’s corporate giants pay off roughly $75bn (€56.4bn, £52.4bn) debt and meet commitments, especially in the troubled real estate sector, where some state developers have failed to pay large invoices for the past nine months.

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