Dubai companies should begin receiving funds “in a matter of a week or two” from the US$10 billion (Dh36.73bn) the Dubai Government recently borrowed from the Central Bank to help ease a cash pinch in the emirate, Nasser al Shaikh, the head of Dubai’s finance department, said at a conference today.
The funds are part of a $20bn bond programme launched last month to help Dubai meet its short-term funding requirements. The move has calmed investors, who feared that companies may face difficulties repaying debts this year, given the reluctance of banks to refinance loans because of a global credit shortage.
So far, the Central Bank has subscribed to $10bn of the bonds, effectively injecting the money into the Dubai Government. “These funds will be used to assist companies to refinance their current obligations maturing this year and the next,” Mr al Shaikh said.
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