Bondholders have most reason to be happy

* username: rupertbu

What does the debt restructuring proposal mean for banks?

Dubai proposes to pay bank creditors in full, but over time through two new tranches of debt with five and eight-year maturities. This was cautiously welcomed. Provided the new loans pay interest, banks should be able to avoid booking provisions.

But the level of interest payments is still under negotiation, and banks will not receive their capital back soon. More than 90 banks are exposed to Dubai World, and it is unclear whether everyone will accept the final terms.