Dubai govt to pump USD 9.5 billion in Dubai World

Dubai govt to pump USD 9.5 billion in Dubai World

The emirate-owned Dubai World is crippled by debt running into billions of dollars, and the group is currently looking to restructure nearly USD 22 billion of the total liabilities.
As part of its efforts to shore up the fortunes of Dubai World, the government today said it would infuse USD 9.5 billion into the entity.

"The Government of Dubai... will support these proposals with significant financial resources, including a commitment to fund up to USD 9.5 billion in new funding over the business plan period," Dubai Supreme Fiscal Committee Chairman HH Sheikh Ahmad bin Saeed Al Maktoum said in a statement.

These funds would be channeled through the Dubai Financial Support Fund (DFSF) to Dubai World and its arms.In a separate statement, Nakheel, which is part of Dubai World, said the government has committed to provide USD 8 billion of "new money" to the unit.

Further, the DFSF would convert its existing USD 1.2 billion debt claim in Nakheel into equity.
Elaborating its restructuring efforts, Nakheel said the plans would enable it to "offer creditors 100 per cent of agreed amounts owed and to fulfill obligations to customers through the prompt completion of near term projects".

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