Nakheel Gets $2.45Bln in Government Funds

Dubai World’s property unit Nakheel received $2.45 billion in government funds to help it meet its obligations, the head of Dubai’s Department of Finance said in an interview broadcast on Tuesday. It was not clear when Nakheel received the money. Nakheel is seeking now to restructure its debts as part of a larger restructuring by its parent, the state-owned Dubai World group. Dubai Department of Finance Director General told Al Arabiya television that the fund, which was set up to support companies owned and linked to the government, had injected the money since “the crisis.” However, he did not specify whether he was referring to the global economic crisis that erupted last year or Dubai World’s debt problem. Dubai World is asking its creditors to let it postpone by at least six months its repayments on $26 billion in debts. Nakheel owes a $3.5 billion bond payment that comes due on Monday. Saleh told Al Arabiya that six months was not enough time for Dubai Work to restructure its debts, but he added that the group had enough assets to meet its obligations.