Dubai unlikely to need central bank aid: Al Suwaidi

Abu Dhabi: UAE Central Bank Governor Sultan Bin Nasser Al Suwaidi has said that Dubai is unlikely to need more central bank aid.

"They haven't discussed this issue with us and I don't think it will be necessary," Al Suwaidi said yesterday in an interview here. His answer came in response to a question on whether Dubai would need further federal support.

The central bank and the Abu Dhabi government subscribed to $20 billion (Dh73.4 billion) of Dubai bonds last year.

Dubai World is in talks with creditors regarding the payment of a $26 billion debt.

It is expected to ask banks for permission to delay loan repayments when it presents a plan this month, three banking sources said on March 8.

The company is expected to present a restructuring proposal to its creditors after its advisers complete valuing the company's assets.

Equal treatment

"They're mindful that the restructuring package does not impact the reputation of the emirate," Al Suwaidi said. "All banks will be treated equally and in a fair way. There will be no discrimination between local or international banks."

The central bank is taking an advisory role in the talks, he said. It is not part of the committee charged with the restructuring.

"Once the restructuring is put in front of banks I think they will have their own decisions whether to accept or not," Al Suwaidi said. "It's best to make it attractive and acceptable to banks."

The proposal will be discussed with banks "very soon", he said.

The International Monetary Fund estimates Dubai borrowed $109.3 billion during the real-estate boom.