UAE government throws Dubai financial lifeline

[Jeep789]

Source: Associated Press

Debt-ridden Dubai sells $10 billion in bonds to federal government as part of broader program

Sunday February 22, 2009, 2:43 pm EST

DUBAI, United Arab Emirates (AP) -- Dubai's finance department says it sold $10 billion in bonds to the United Arab Emirates Central Bank, alleviating some concern about the Gulf city-state's finances.

The sale is part of a $20 billion long-term bond program launched Sunday.

The bonds carry a 4 percent annual interest rate and mature in five years.

The department says the sale will provide "the necessary liquidity" to compensate for global funding sources that have dried up over the past year. It adds the deal gives it sufficient funding to "meet its financial obligations and continue its development program."




Read more: http://finance.yahoo.com/news/UAE-government-throws-Dubai-apf-14433708.html

[BlooInBloo]

1. Heh. Everyone needs bailing out.

[Sultana]

2. Another reason why Abu Dhabi will always "own" Dubai

:D

[liberal N proud]

3. Dubai, Now there is an example of excess

This nation spent and threw money at everything from islands in the sea with sky-scrapers built on them to indoor ski resorts.

All with oily money from artificially high oil prices.

If there is one place I have no compassion for their economic woes is Dubai.