Dubai World asks for more time for debt payment

Dubai World asks for more time for debt paymentCrisis-ridden Gulf investment fund, Dubai World has urged creditors to give it at least eight years for paying the debt worth 22 billion. It has promised lenders that things would soon turn better for the Dubai World after getting extension for meeting its debt obligations.

The state firm is gearing up for putting the proposal ahead of seven member committee to resolve the matter which is important for reinstating investor's confidence in the firm. The Lenders, on the other hand took a sign of relief with reports of some movement by the state-owned conglomerate Dubai World to resolve the crisis.

Earlier in November last year, the Dubai World surprised the financial World by announcing standstill on repayments of $26 billion of loans taken from various national and international banks including Royal Bank of Scotland, Standard Chartered, HSBC and Lloyds Banking Group.

Sources said that repayment terms of between five and eight years can be offered by the banks but rate of interest to be paid by Dubai World demands more negotiations for bringing it in the commercial limits.