Abu Dhabi signs refinancing agreement with Dubai

Abu Dhabi, March 16 (IANS/WAM) The Abu Dhabi finance department and the Central Bank of the United Arab Emirates (UAE) Sunday announced the signing of an agreement between the Abu Dhabi government and the Dubai government for refinancing of a $10 billion loan.

The Central Bank of the UAE also signed an agreement for re-discounting of bonds issued by Dubai Government of $10 billion value.

In both cases, the tenure was set at five years renewable, with a fixed interest rate of 1 percent through the entire tenure.

The Dubai government was granted these facilities which are getting due in the current year, back in 2009.

Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Dubai civil aviation department and supreme fiscal committee, signed for the Dubai Government, while Hamad Al Hurr Al Suwaidi, chairman of the Abu Dhabi finance department, signed for the Abu Dhabi government, while Khalifa Mohamed Al Kindi, chairman of the board of directors of the Central Bank of the UAE, signed on behalf of the Central Bank.

These agreements are made within the context of its parties' continued efforts to boost the competitiveness of the UAE economy on both regional and international levels, and to reflect the upturns Dubai domestic economy has witnessed over the past few years, which played a crucial role in drawing a number of major investment schemes and important events, the latest of which was the success of the UAE's bid to host Expo 2020 in Dubai.

"The UAE ranks 30th amongst the world's largest economies, a fact that reflects its significant economic status and role. The signing of these agreements is aimed at boosting the economic recovery the country is witnessing, and would contribute to realisation of the vision of our wise leadership, which aims at supporting sustainable economic development and ensuring prosperity and welfare for the UAE and its people," Hamad Al Hurr Al Suwaidi, said after signing the agreement.

--IANS/WAM

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