By Shane McGinley
Rick Pudner says talks have been 'very positive'; praises transparency.
The announcement by the Dubai Government that it is to plough up to $9.5bn into Dubai World was described as “a very positive” step in the restructuring plans by the troubled conglomerate, the head of one of the largest banks in the region said on Thursday.
Rick Pudner, CEO of Emirates NBD bank, the largest bank in the region in terms of assets, said that while the announcement may have “taken a little bit longer to nail down… overall it is very positive.”
The announcement stated that of the new cash being ploughed into Dubai World, $8bn will be pumped into real estate developer Nakheel, and the remaining $1.5bn into parent company Dubai World.
Emirates NBD, along with Standard Chartered, HSBC, Lloyds, Royal Bank of Scotland and Abu Dhabi Commercial Bank, account for approximately two thirds of the total Dubai World exposure.
While Pudner had not seen the full details of the statement, he said that the ongoing discussions between Dubai World and its creditors “have been very positive and the outcome I am sure will be of benefit to Dubai and the UAE.”
“I think the transparency has been good,” he also said in relation to the ongoing talks regarding Dubai World’s restructuring of its $23.5bn debts.
The Dubai Government statement added that the Dubai World proposals will now be presented to its creditors, which include Emirates NBD bank, and “the restructuring process is expected to take several months to implement.”