Abu Dhabi asks banks to pay $800 mln for airport project guarantees - sources | Reuters
State-owned Abu Dhabi Airports has called on almost 3 billion dirham ($816.82 million) worth of guarantees issued by local banks on behalf of contractors working on an airport expansion project already delayed by several years, sources said.
The move, which could further delay the project, comes ahead of expectations of a global recovery in travel demand after the coronavirus pandemic.
It could pressure balance sheets of banks already heavily exposed to the construction sector in the United Arab Emirates, sluggish for years amid a slowdown in infrastructure and property projects.
Abu Dhabi Airports signed in 2012 a $2.9 billion contract with a joint venture of contractors comprising Arabtec Holding, which filed for liquidation in January, Athens-based Consolidated Contractors Company and Turkey’s TAV.
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