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Abu Dhabi agrees to refinance $20bn of Dubai’s debt

Abu Dhabi and the UAE central bank have agreed to refinance $20bn of debt that was extended to the Dubai government as emergency aid during its financial crisis and comes due this year, Reuters has reported. The debt is being rolled over for five years at a 1% annual interest rate. The roll-over covers a $10bn, five-year loan which was offered to Dubai by the Abu Dhabi government through two state-owned banks, and $10bn of five-year bonds, which Dubai issued to the UAE central bank.