DUBAI,(Reuters) – Dubai will use its $20 billion sovereign bond to support government-linked companies through a special fund but has not problems meeting government debt obligations, it said in a statement on Wednesday.
“Recognising the importance of government financial support to these entities in times of global liquidity constraints … the Dubai Department of Finance launched a $20 billion funding programme through the issuance of medium-term treasury bonds, which will be used to support these entities through a financial support fund on a need basis,” the statement said.
It said the structure of the Support Fund would be disclosed at a later stage.