Abu Dhabi, UAE central bank extend $20bn Dubai debt

State-owned companies like Nakheel, which was behind the Palm developments, were hit hard by the financial crisis. (File photo: Shutterstock)

Abu Dhabi and the central bank of the United Arab Emirates have agreed to refinance $20 billion of debt that was extended to the Dubai government as emergency aid during its financial crisis and comes due this year, the state news agency said on Sunday.

The debt is being rolled over for five years at a 1 percent annual interest rate, WAM said in an official statement.

The debt comprises a $10 billion loan which was offered to Dubai by the Abu Dhabi government through two state-owned banks, and $10 billion of bonds which Dubai issued to the UAE central bank.

Last Update: 12:08 KSA 15:08 - GMT 12:08