Dubai Bail-Out Aid From Abu Dhabi Less Than Previously Thought

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A Dubai government spokeswoman said on Monday that half of the $10 billion bail-out aid from its neighbour Abu Dhabi was actually from an older debt deal.

Oil-rich Abu Dhabi lent the money to Dubai in December to pay-off debt and other unpaid bills. But Dubai now says $5 billion of that aid was received in November.

The revelation is likely to raise further concerns regarding the lack of transparency around Dubai's debt restructuring.

The government spokeswoman said that Dubai had used up $1 billion out of the $5 billion, which was offered under a five-year bond priced at 4%.

Dubai shocked markets in late-November when it requested a standstill on $26 billion in debt accumulated by its flagship conglomerate Dubai World for at least six months as a first step towards restructuring.

Without the bail-out, there were concerns that Dubai would not be able to pay-off what it owed and might have had to resort to a potentially embarassing default.

A Dubai government spokeswoman said on Monday that half of the $10 billion bail-out aid from its neighbour Abu Dhabi was actually from an older debt deal. (Market News Provided by RTTNews)