To protect itself from the kind of debt crisis that shook Dubai in 2008, Abu Dhabi has issued an official document clarifying ultimate responsibility for new debt issuance by its government-related entities
The document, revealed by the Financial Times, introduces centralised mechanisms to manage debt and restraints on borrowing by quasi-sovereign bodies. However, it does not change the level of state support available to Abu Dhabi's key development vehicles, according to bankers and analysts cited by Reuters.
The document is reportedly dated 7 August 2012 and was delivered to state-owned entities by the Executive Council. It stated that the Government will only be responsible for debt formally guaranteed by the council or Abu Dhabi law if the borrower is unable to meet its obligations.
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