Financial Times FT.com

Dubai rejects debt guarantee

By Simeon Kerr in Dubai, Andrew England in Abu Dhabi, and Frances Williams in Geneva

Published: November 30 2009 06:50 | Last updated: November 30 2009 23:44

Dubai’s government will not guarantee the debts of Dubai World, the state-owned holding company struggling under the weight of $59bn (£36bn) in liabilities, arguing that lenders were mistaken to think that there was sovereign backing.

Abdulrahman al-Saleh, department of finance chief, said that creditors were responsible for their own lending decisions and should differentiate between companies and the state.

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