Economy;Insurance

The U.S. bank said the creditor banks of Dubai World could lose between 54% and 56% of the loans by the group based on the terms of the payment made by Dubai World in its proposed restructuring.

Said Zafar Nazim, an analyst at JP Morgan in a research note to clients that the great nemesis of the nominal value due to the low interest rate from the market price to be paid in cash between 1% and 2% proposed by the Dubai World in two installments of loans.

He added that if it will be difficult for banks to welcome Such a reduction in the value of loans due to the long period of time the duration of the restructuring process But many banks are willing to accept the terms of the deal beyond the crisis of Dubai World.

It suggested the Dubai World Group repay debts over a five or eight years and has provided additional options for the creditor banks, depending on whether local or foreign currency loans. The proposal includes two installments covers 14.4 billion U.S. dollars worth of the creditor banks.

It is believed that JP Morgan was increasingly likely that Dubai World aims to restructure voluntarily at the special tribunal set up in Dubai for the examination of a prosecution against a group of Dubai World.

The group said in May it had reached an agreement with seven major banks, credit Menkhvp about 60% of the debt and the group needs the approval of banks Menkhvp approximately 66.67% of the debt to move forward in restructuring.