ABU DHABI: Abu Dhabi is attempting to rein in boom-year borrowing that has triggered bailouts of state-linked companies and losses in parts of its swelling global investment portfolio.
The Emirate which pumped at least $20bn into its neighbour Dubai during its financial crisis, has now quietly issued its own tougher policy for debts taken on by government-owned businesses, reported the Financial Times on Tuesday.
The policy makes explicit for the first time that state-linked companies must apply for a sovereign guarantee to ensure government support for their debt.
It also provides an institutional framework for the government to take tough decisions over which entities it supports.
The debt policy circulated to government-owned companies and banks says all state borrowing will now have to be ultimately approved by the executive council, an advisory body overseen by Sheikh Hazza bin Zayed Al-Nahyan. (QNA)
