Amlak debt slashed by Dh4 billion

The UAE Minister of Economy, Sultan bin Saeed Al Mansouri, has revealed that the government has reduced Dubai-based mortgage provider Amlak Finance’s debt by Dh4 billion. The UAE’s economy ministry website said the ministerial committee set up by the government to resolve the problem of Amlak Finance has succeeded, in coordination with the federal government and local authorities concerned, in reducing Dh4 billion in debt owed by the firm. He stressed that the commission is keen to protect the rights of shareholders and the continuity of the company, while not exposing them to bankruptcy, pointing out that the government will not allow bankruptcies of companies, as has happened in many European countries and the US, and that the state is keen to give priority to the protection of the rights of shareholders and their interests and not expose them to any risk. He pointed out that the debt was reduced through rescheduling debt as well as through the sale of some land owned by the company, and the restoration and recovery of other land owned by the company, as well as finding financial solutions with a number of third-party creditors. On resumption of trading in Amlak shares on the Dubai Financial Market, he stated that “the ministerial committee is currently working on payment programs and fiscal stability in all respects, in cooperation with the Ministry of Finance and the Central Bank, but the process of resumption of trading of the shares of the company will take time”.