Dubai World's proposals on how it wishes to restructure its debts to creditors will be presented to banks owed money this month, it has been confirmed.Newspaper reports had suggested that a plan would be put forward as early as this week and Dubai World have confirmed that the process will occur before April.
"A formal proposal will be presented by Dubai World to creditors in March," a government spokesman told AFP.
Last November, the state-owned company announced it was seeking to restructure its debts to banks around the world – sparking a loss of confidence in Dubai across global financial markets.
Dubai had borrowed heavily to fund its property boom, but the financial crisis saw house prices plummet by 50 per cent between 2008 and 2009.
Many of the banks most exposed to Dubai World are British – with Royal Bank of Scotland, Lloyds and Standard Chartered all reportedly owed in excess of $5 billion by the firm.
Its total debt is believed to stand in the region of $60 billion.
"A formal proposal will be presented by Dubai World to creditors in March," a government spokesman told AFP.
Last November, the state-owned company announced it was seeking to restructure its debts to banks around the world – sparking a loss of confidence in Dubai across global financial markets.
Dubai had borrowed heavily to fund its property boom, but the financial crisis saw house prices plummet by 50 per cent between 2008 and 2009.
Many of the banks most exposed to Dubai World are British – with Royal Bank of Scotland, Lloyds and Standard Chartered all reportedly owed in excess of $5 billion by the firm.
Its total debt is believed to stand in the region of $60 billion.
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