Payment delay 'manageable'

Dubai : An official of the International Monetary Fund (IMF) said yesterday that Dubai World's step to delay debt repayments "won't disrupt the global financial system".

"In regard to global fin-ancial markets, the impact is likely to be contained," Caroline Atkinson, the IMF's director of external relations, said at a press briefing yesterday in Washington.

Dubai World's move is "manageable" for banks that lent money to the company, added Masood Ahmad, director of the IMF's Middle East and Central Asia department.

There has been less "market uncertainty" since Dubai clarified investors' questions in recent days, Ahmad said.

He said he anticipates the UAE has the resources to "easily deal with these issues."

Stocks rallied from Shanghai to New York, including in the Middle East, yesterday as Dubai said half of Dubai World's obligations are "stable."

Dubai is in talks with its lenders to restructure $26 billion of debt and will meet them for talks in the coming week.

Boundaries

Ahmad said Dubai World's announcement of the amount of debt it is seeking to restructure "has helped to put boundaries around the amount and the scope of the debt restructuring."

He said the IMF was also encouraged by Dubai World's announcement it will strive for equitable treatment of creditors in the debt talks.

"Dubai World's debts do not affect the economic performance of Dubai or the UAE and it is a matter of time before the company restructures its debts and honours its commitments as per a scheduled plan," Sultan Bin Saeed Al Mansouri, the UAE's economy minister said late on Wednesday.

Meanwhile, National Bank of Abu Dhabi said yesterday it will continue to increase its investments in Dubai, as it embarks on a rapid expansion across Asia.

Officials of the NBAD, the largest lender by market value in the UAE, held presentations in Hong Kong recently, announcing plans to expand in six countries across Asia, including China, India and Malaysia.