The Government of Dubai, acting through the Supreme Fiscal Committee (SFC), today announced a set of actions in relation to Dubai World, the UAE news agency "WAM" reported. Sheikh Ahmad Bin Saeed Al Makhtoum, Chairman of the Dubai Supreme Fiscal Committee said: Like other global financial centers, Dubai has faced recent market challenges driven by global economic slowdown and severe real estate market correction. Recently, Dubai World announced that it might not be able to commercially support its obligations. Since that time, the Government of Dubai has worked closely with the Abu Dhabi Government and the UAE Central Bank addressing and assessing the impact of Dubai World on the UAE economy, banking system and investor confidence. The following provides comprehensive set of actions: First, the Government of Abu Dhabi and the UAE Central Bank have agreed to provide important support. Specifically, the Government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World. As a first action for the new fund, the Government of Dubai has authorized $4.1 billion to be used to pay the "Sukuk" (Instruments) obligations that are due today. The remaining funds would also provide for interest expenses and company working capital through April 30, 2010 - conditioned on the company being successful in negotiating a standstill as previously announced. --MORE
