Dubai needs to take additional steps to address uncertainties surrounding the solvency of its government-related enterprises and to mitigate the risks they pose to the government’s balance sheet, the International Monetary Fund said yesterday.
In its Global Financial Stability Report, the IMF said Dubai should enhance transparency and information disclosure, take steps to ensure government-related companies can operate without recourse to government guarantees, and strengthen risk management.
Government-owned Dubai World has already reached an agreement with creditor banks to restructure about $25bn of debt, but other government-related entities, such as Dubai Holding and Dubai Group, are still negotiating debt restructuring agreements.
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