The emirate borrowed the money five years ago and the debt is due to mature next month
Dubai has reached agreement on rolling over $10bn in debt extended by the central bank of the United Arab Emirates during the global financial crisis, two sources familiar with the matter told Reuters on Wednesday.
The emirate borrowed the money five years ago and the debt is due to mature next month. It helped Dubai and its state-linked companies avoid default during the crisis, when the emirate's real estate market crashed.
"The deal is done," one source said, declining to be named because the matter has not been formally announced.
"The debt will be rolled over at better terms," he added, without giving details of the terms or saying for what period the debt would be rolled over.
Official spokesmen and other central bank and government officials in the UAE declined to comment or were unavailable to comment.
The debt was widely expected to be rolled over. Dubai is now recovering strongly from the crisis as its real estate market and trade and tourism industries boom.
Does roll over mean extension of debt repayment? I assume that means that it is not going to be paid since no one commented on this or the article would have said that the $10 Billion Crisis debt would be resolved/paid next month.
Shocking, another example of how there is one rule for the Govt and one rule for the rest of the country, what about the people who lost their jobs and could not pay back their debts for 12 months rent and the banks in Dubai will not offer any assistance to freeze interest of make payment plans
It is an extension, you should not read into this necessarily an inability to pay. Debt gets rolled over all the time, essentially you have short-term financing for long-term needs
The problem with this strategy is that even in the best scenario you may find yourself in a situation where credit suddenly becomes more expensive or even unavailable
In terms of risk this is the counter-equivalent of a bank that is providing long-term credit with short term "loans" from its customers (the money in your account)
You may want to check other media to see where this deal fits
They are starting new projects at the expense of others and old debts and projects are not being paid. A nicer way of saying not paying over is to say rolling over. A person who is 50-60 years old waiting to get paid may possibly die before he is paid his owed debt. I wonder if we could roll over our debts to our banks and governments?