Five to eight-year timetable set for repayment as government offers to back firm with own money
The Dubai government is offering to pay back creditors of its beleaguered parent company Dubai World over five to eight years.
It has also offered to back the firm by putting in its own money - a move seen as a major concession to the banks, who hold the majority of the corporation's £15.8bn liabilities.
The news will be perceived as an attempt to rebuild conference in the troubled emirate, which saw its property markets take a battering in the downturn.
Trade creditors will be paid an immediate payment of £91,000, but will then receive just 40% of outstanding debts. The other 60% payment will take the form of “tradeable securities”, the Daily Telegraph said.
"We had the interests of Dubai at heart - that's the most important objective in designing this plan," a senior government official told newspaper. "We feel it's fair and equitable to all creditors. The government is subordinating its claims to other claims."