Government injects $2bn into loss-making Dubai Holding

Dubai government willing to put more cash into loss-hit conglomerate, expects banks to take some financial pain
Government injects $2bn into loss-making Dubai Holding
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By Reuters
Tue 16 Nov 2010 09:24 AM

The Dubai government has pumped

$2bn into Dubai Holding, taking control of

the conglomerate's financial restructuring, the Financial Times

said on Tuesday.

The newspaper quoted Mohammed Al Shaibani, director of the

Ruler's Court, the body that coordinates the activities of

government departments, as saying the government has already

injected $2bn into Dubai Holding and is willing to put

more capital into the loss-making conglomerate.

"I don't want to put any more money in as the government,

but I will do it as and when it's required," he said.

The government also expects banks to accept some of the

pain, as was the case in the Dubai World restructuring, Shaibani told the newspaper in an interview.

He said banks could expect to win advisory deals as the

government considered future asset sales and privatisations.

"Priority will definitely go to banks that have been very

supportive - we are very loyal customers," he said.

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