Dubai, cbank agree roll-over of $10bn debt
Dubai, February 19, 2014
Dubai has reached agreement on rolling over $10 billion in debt extended by the central bank of the United Arab Emirates during the global financial crisis, two sources familiar with the matter told Reuters on Wednesday.
The emirate borrowed the money five years ago and the debt is due to mature next month. It helped Dubai and its state-linked companies avoid default during the crisis, when the emirate's real estate market crashed.
"The deal is done," one source said, declining to be named because the matter has not been formally announced.
"The debt will be rolled over at better terms," he added, without giving details of the terms or saying for what period the debt would be rolled over.
Official spokesmen and other central bank and government officials in the UAE declined to comment or were unavailable to comment.
The debt was widely expected to be rolled over. Dubai is now recovering strongly from the crisis as its real estate market and trade and tourism industries boom. - Reuters