Dubai World gets $9.5 B bailout

DUBAI, United Arab Emirates (CNN) -- The metropolis polity announced plans weekday to dispense $9.5 1000000000 in resource to help out its state-owned holding company, metropolis World.

Dubai World shocked investors around the world in Nov when it asked for a freeze on payments owed on its $23.5 1000000000 in debts.

Of the $9.5 1000000000 infusion announced Thursday, the lion's share -- $8 1000000000 -- will go toward flooded repayment of bonds belonging to metropolis World's concept development arm, Nakheel.

The polity did not address the rest of the outstanding debt: $14.2 billion. It said creditors may hit to move fivesome to eight eld for the amount to be paid out in full.

Dubai said that $5.7 1000000000 of the announced infusion is remaining money from a $10 1000000000 loan from the neighboring emirate, Abu Dhabi.

The remainder of the money -- $3.8 1000000000 -- will come from \"internal polity resources,\" metropolis said without elaborating.

The plan does not include any added resource from the federal government.

The metropolis Financial Market shot up more than 4% as it regarded the declaration as a positive step.

0:00 2:48Dubai's world's largest racecourse

Dubai is the most inhabited of the seven emirates that comprise the United Arab Emirates. Its holding company, metropolis World, is at the center of Dubai's oblige to diversify its economy into property, leisure and investment.

Its prizewinning known arm is Nakheel, the concept developer behindhand the Palm Jumeirah and World archipelagos of man-made islands built for the super-rich.

When metropolis World asked for a freeze on debt payment in November, it delivered a cold dose of reality to speculators worldwide who believed the oil flush region was impervious to the global business crisis.