Dubai World in talks with creditors over debt repayment

Dubai World officials are meeting creditors to discuss debt repayment plan.

A media report quoting a participant said, “The possibility of repaying all bank loans in full was discussed as a medium-term possibility.”

The report also said that the meeting is meat to provide banks with information on Dubai world’s debt and the terms of support of the Government of Dubai.

The state-owned Dubai World is seeking to restructure about $22 billion of debt. Previous month, it surprised world markets with its announcement that it would seek freeze or delay the repayment of debt until at least the end of May.

Dubai World recently received $10 billion loan from Abu Dhabi which assisted it in repaying $4.1 billion on an Islamic bond from Nakheel.

Overall, Dubai World is burdened with a heavy debt of around $59 billion.