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UAE markets up after Dubai World debt plan announcement
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United Arab Emirates stock markets closed up on Monday, the first day of trading after the Dubai World conglomerate announced an agreement with creditor banks to restructure billions of dollars of debt.

The Dubai Financial Market rose 2.43 percent to close at 1,630.85 points, while the Abu Dhabi Securities Exchange gained 1.38 percent to close at 2,566.56 points.

Troubled Dubai World announced on Friday that 99 percent of its creditor banks have agreed to its proposal to restructure some $24.9 billion of debt.

Dubai, which borrowed heavily to fuel development, rocked global financial markets in late November when it said it might be forced to freeze debt payments by Dubai World, stoking fears of a state default over sovereign debt.

Dubai World said in May that it had "in principle" reached an agreement with creditors under which it will divide $14.4 billion of debt into two tranches, maturing in five and eight years respectively, while the government will convert $8.9 billion of aid to the company into equity.

The company's total debt, including liabilities, is around $60 billion. The emirate's debt is estimated at between $80 and $100 billion, but some analysts say it could be as high as $170 billion.

Source Now Lebanon

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