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Central Bank Chairman: Dubai unlikely to need more aid

2010-03-18

Al Khaleej: In an interview with Bloomberg, Sultan bin Nasser al Suweidi said state-owned conglomerate Dubai World"s [DBWLD.UL] debt proposal would treat all banks equally and that local banks will be able to bear the brunt of any "haircuts". "They haven"t discussed this issue with us and I don"t think it will be necessary," Suwaidi said in response to a question on whether Dubai will need further federal support. In February 2009, the UAE central bank took up $10 billion in a $20 billion sovereign bond programme launched by Dubai. Proceeds from the programme were earmarked for strategic state-linked firms. Dubai World is in talks to renegotiate debt linked mainly to its property units Nakheel [NAKHD.UL] and Limitless World. The company announced it would request a six-month delay on repaying the funds last November. It staved off default on a $4.1 billion Islamic bond linked to Nakheel in December, after a last minute bailout from Abu Dhabi.