The Dubai Government will help Dubai World in restructuring its US $22 billion debt by paying off short-term loans, according to Abu-Dhabi based newspaper Al Ittihad.
Dubai World includes major property developers Nakheel and Limitless.
The paper said that according to “informed sources”, Dubai World will receive support from the Dubai Financial Support Fund to pay off short-term loans.
The support fund was set up in July to help tackle the impact of the global financial crisis on the emirate.
The support “is part of proposals by Dubai World” for restructuring its debt, the newspaper quoted sources as saying.
The proposal is expected to be submitted shortly to Dubai World's creditors.
"We are still on track to present a formal proposal to creditors in March," a Dubai government spokeswoman told newswire AFP.
Global stock markets were rocked last November when Dubai World asked for a debt standstill from its creditors.
Dubai government has said it is open to lending more than the $6 billion it lent Nakheel in December.
According to publicly available statistics, Dubai World's total debt, including liabilities, is around $60 billion.
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