Thursday, March 25, 2010

Dubai World gets $9.5 billion

So much for that crisis. $80 oil cures a lot of ills.

DUBAI—Dubai's government Thursday said it will inject about $9.5 billion into Dubai World and real-estate developer Nakheel while offering creditors a full repayment financed by fresh borrowing over eight years.

Aidan Birkett, Dubai World's chief restructuring officer, said that banks have given a positive response so far to the plan to repay up to $26 billion of debt, adding that "it's a very attractive deal for creditors."

Markets reacted positively to the plans, which follow months of doubt over whether Dubai World can pay its debts. Dubai's benchmark stock index closed up 4.3% to 1845.21. Dubai's five-year credit default swap rate tightened by about 0.50 percentage point to around 3.5 to 3.75 percentage points.
Dubai's market rocketed 4.3% on this news.

Qatar's GDP growth was 16%

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