The UAE is to lend Dubai $10bn to ease the emirate’s debt repayment schedule in an effort to rescue the struggling economy. The UAE central bank subscribed to half a $20bn five-year bond programme launched by the Dubai government, which said the deal would enable it to meet its financial obligations. The unsecured paper yields a 4% dividend. The loan should ease the cost of insuring against a default, which in recent weeks saw five-year credit default swaps on Dubai debt rising to levels similar to Iceland.
