HSBC Ready to Sign the Conglomerate’s Debt Restructuring Proposal

HSBC BankAccording to the Chairman of the Middle East and Europe, HSBC, who is the major creditor of Dubai World, is ready to sign the Conglomerate’s Debt Restructuring Proposal.

Stuart Gulliver, who oversees the British bank’s global wholesale banking, stressed that HSBC was not speaking as a part of the seven member Coordination Committee, but was speaking as a major private creditor.

He also said that they were supportive of every action that was taken by the Dubai Government and it was a very reasonable proposal. He added that they were very close to having a complete satisfactory outcome.

When rolling over the existing loans, each creditor bank can choose the new maturities and know which commercial term would be attached to it.

Dubai World last week offered its creditor banks, who were owed an overall US$14.2 billion at the end of 2009, to roll over their full principal between five to eight years but didn’t tell them the interest rates in the statements.

Mr. Gulliver also said that there were no problems or barriers in the in the Dubai Debt deal.