From: "Farkas, Andrew L." < 1=1=> To: "Epstein ([email protected])" <[email protected]> Subject: FW: Dubai WSJ Article - FYI Date: Fri, 24 Apr 2009 14:04:30 +0000 From: Levy, Marc Sent: Friday, April 24, 2009 9:40 AM To: Farkas, Andrew L.; Garrison, Frank; Cohen, Jeffrey; Carleton, George; Garner, Charles; Lande, Mark; Aston, Jim Subject: Dubai WSJ Article - FYI Dubai Gets Its Breathing Room Government Quickly Gives Companies Half of a $10 Billion U.A.E. Lifeline By CHIP CUMMINS<http://online.wsj.com/search/search_center.html? KEYWORDS=CHIP+CUMMINS&ARTICLESEARCHQUERY_PARSER=bylineAND> and MARGARET COKER<http://online.wsj.com/search/search_center.html? KEYWORDS=MARGARET+COKER&ARTICLESEARCHQUERY_PARSER=bylineAND> DUBAI -- Two months after receiving a $10 billion lifeline, Dubai's government says it has disbursed more than half of that money to indebted companies, allowing them to pay off bills and refinance debt. The quick payouts have provided breathing room for a handful of government-controlled companies. Dubai also has recently stepped in to fill funding gaps for certain Dubai entities that were unable to refinance or pay off debt on their own. This has reassured markets that Dubai, for the time being, can support its overstretched companies. The cost of insuring Dubai-related debt against default soared earlier this year but has fallen back again. The city-state, however, is still straining under a short-term debt load. Dubai's real-estate market has dropped, and prospects are dim this year for tourism, transportation and financial sectors. That means persuading investors to lend more, or seeking more federal funds, is key to staving off a hard landing. Dubai and its corporate entities have nearly $19 billion of debt coming due this year and next, according to investment bank EFG-Hermes. Unlike many Mideast neighbors, Dubai doesn't have much oil and has financed its growth by borrowing. Officials say they won't cut back on t