Dubai World's Lenders to Agree on Debt Restructuring Terms, Al Tayer Says
Dubai World’s lenders will agree to the holding company’s debt restructuring proposal, Emirates NBD PJSC chairman said.
“All banks will agree” to the proposal “all the United Arab Emirates and foreign banks,” Chairman Ahmed Al Tayer told reporters in Dubai today. It’s a “good deal, no doubt,” he said.
Dubai World, the state-owned holding company, said on May 20 it reached an agreement with its main creditor group to restructure $23.5 billion of liabilities as it seeks to resolve a debt crisis that roiled global markets last year. Dubai World will pay $4.4 billion of the loans in five years and another $10 billion over eight years.
Emirates NBD, the U.A.E.’s largest bank, hasn’t made a decision on provisioning for Dubai World, Al Tayer said.
“I don’t think there’s deterioration in the portfolios and some sectors are doing fine,” he said, referring to the bank’s performance, excluding Dubai World. “I don’t think there’s any need to increase” provisions.