Special Report:Global Financial Crisis
ABU DHABI, Feb. 23 (Chinese media) -- Dubai government launched a bond program of
20 billion U.S. dollars to help it meet its financial obligations and press
ahead with its development plans, local daily The National reported Monday.
The Finance Department plans to issue five-year bonds paying 4 percent
interest per year, the report said, adding that the Central Bank of the United
Arab Emirates (UAE) had subscribed to the first 10 billion dollars of the issue.
The move comes amid mounting concerns over whether Dubai, a regional
financial hub, will have to work alone to cover an estimated 13.2 billion
dollars debt it accumulated to finance expansion projects during a six-year
economic boom.
Economists said the news is a clear signal of federal support for an
individual emirate's finances as the nation is facing the challenges of global
economic crisis, and will buoy the tumbling financial markets.
Dubai's real estate sector, a pillar of its economy, is facing a sharp
price slump and hundreds of billions of dollars of construction projects have
been cancelled or put on hold in the UAE as a result of the economic slowdown.
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