The Bank creditors for Dubai World are concerned about the company's proposal to restructure its debts. This proposal came a day after they had stated to pay back its loans to the banks within eight years. There are seven banks that are negotiating with Dubai World, and the banks are saying they are concerned about the lack of clarity on payment of Interest to Dubai World Leaders. The banks feel that they will endure a big loss of debt repayment because Dubai World is giving preferential treatment to real estate developers.
These banks also sit on the co-ordination treatment, and some of the member's disagree with the proposal. The proposal was presented without agreement on interest payment. The committee is expected to present a response to the proposal Dubai World has made. Under the proposal Dubai World's creditors will receive their principle debt over five to eight years.
I hope that Dubai can pay off their debt. I don't know how the United States is going to pay off the debt. This is a good post, however, what is your opinion on the subject?
ReplyDeleteI did not know Dubai had debt.. but i guess it makes sense since they been making many new high tech buildings and everything is over the top and expensive. very interesting post.
ReplyDeleteI guess thats what happens when a country is heavily leavered.
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