Two months after receiving a $10 billion lifeline, Dubai's government says it has disbursed more than half of that money to indebted companies, allowing them to pay off bills and refinance debt.
The quick payouts have provided breathing room for a handful of government-controlled companies. Dubai also has recently stepped in to fill funding gaps for certain Dubai entities that were unable to refinance or pay off debt on their own.
This has reassured markets that Dubai, for the time being, can support its overstretched companies. The cost of insuring Dubai-related debt against default soared earlier this year but has fallen back again.
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