Abu Dhabi offers half cash promised for Dubai rescue

* username: rupertbu

A $10bn rescue package for Dubai pledged by Abu Dhabi was only half that amount because the headline figure included $5bn of loans already granted by two banks, Dubai's government said yesterday.

The disclosure indicates that the emirate has less cash on hand than previously supposed to meet the claims of creditors, and reinforces its reputation for poor communications.

In late November, Dubai said it had received $5bn (€3.5bn, £3.1bn) in credit lines from two Abu Dhabi-controlled lenders: Al Hilal Bank and National Bank of Abu Dhabi. Just hours later it shocked financial markets by announcing it was seeking a debt standstill at its troubled Dubai World conglomerate, raising the spectre of an unprecedented default.