Dubai’s Department of Finance has raised $5bn from two Abu Dhabi banks as part of a $20bn bond programme being managed by the Dubai Financial Support Fund, the government said today.
National Bank of Abu Dhabi (NBAD) and Al Hilal Bank have agreed to buy as much as $2.5bn each of the Dubai government bonds.
The $5bn adds to a $10bn tranche Dubai borrowed from the Central Bank in February. The emirate has been using funds raised under the $20bn programme to support government-owned companies that had borrowed heavily and ran short of cash in the wake of the financial crisis.
Well I guess the recession is still not over yet. I think more problem will start to surface
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