Abu Dhabi's Dubai Aid Included $5 Billion From Banks

Dubai's $10 billion aid from Abu Dhabi in December, which helped the emirate avoid default on a state-linked developer's bond, included $5 billion previously lent by two Abu Dhabi banks, a Dubai government spokeswoman said on Monday, Reuters reported. It had been unclear whether Abu Dhabi's $10 billion lifeline on December 14 -- which enabled Dubai World to repay a $4.1 billion Islamic bond, or sukuk by developer Nakheel -- was entirely new money or included the bond to Abu Dhabi-controlled banks. Dubai World is in the midst of talks with its creditors to finalize a formal standstill agreement that would last for six months, during which the conglomerate will further restructure its debt pile. On Monday, the Financial Times said some creditors to the conglomerate are seeking to offload loans to reduce their exposure to the conglomerate. Read more.