UAE govt raises Emarat capital to $2.45bn
Dubai, June 29, 2011
The federal government of the UAE has raised the capital of its indebted fuel retailer Emarat by 50 per cent to Dh9 billion ($2.45 billion), the state news agency WAM reported.
In January, the UAE's Federal National Council (FNC) passed a bill allowing Emarat to borrow the equivalent of up to 50 per cent of its capital.
Emarat had debt of around Dh1.9 billion, the FNC said in January, as fuel subsidies imposed on gasoline prices by the UAE government hit the company's profits.
Emarat's petrol stations were dry in April after a payment problem with suppliers, prompting customers in the UAE, the world's third-largest oil exporter, to fill up at rival sites.
A third petrol shortage in the UAE in 10 months has been going on for four weeks since stations owned by Emirates National Oil Company started to run dry in the northern emirate of Sharjah.-Reuters