IMF says not worried by Dubai's debt obligations

Senior International Monetary Fund official unconcerned about debt estimated at $48bn
(Photo for illustrative purposes only)
By Reuters
Tue 21 May 2013 12:26 PM

The International Monetary Fund is not worried about Dubai's ability to meet its upcoming debt obligations, Masood Ahmed, director of the IMF's Middle East and Central Asia department, told reporters on Tuesday.

Standard Chartered bank estimates Dubai and its government-related entities (GREs) - companies and agencies backed by the state - have around $48bn of debt obligations coming due between 2014 and 2016.

The emirate was looking at alternative means to repay its debt it asset sales did not materialise, a senior government official said earlier in May.

"I think so far the GREs (government-related entities) have managed their debt rescheduling since 2009 quite successfully," Ahmed said.

"Nevertheless debt levels in Dubai remain very high, they are about 100 percent of GDP, there's substantial amount of debt roll over the next few years including part of the debt restructured in 2009. Our view is that its important to deal with these issues proactively and more communication with the investors would be part of that," he added.

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