Dubai World (DW) is making progress in discussions with its creditors as negotiations got under way in London on its $26 billion (Dh95.47bn) worth of debt restructuring, bankers close to the discussions said yesterday.

While details of the proposals remained sketchy at the time Emirates Business went to press, according to one banker who wished to remain anonymous, DW has proposed different options, with and without sovereign guarantees and haircuts, with different repayment tenures, and at 'reasonable' coupon rates.

"There are encouraging signs," said a banker who wished to remain anonymous. "Both parties are keen to seek a swift and amicable agreement," another banker said.

Meanwhile, two of the UAE's senior ministers have reiterated their faith in DW's ability to soon reach an agreement with its creditors. Asked whether the government would support Dubai, Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Finance Minister, said: "Of course. Dubai is part of the federation."

Sheikh Hamdan said the emirate had not approached the federal government for aid. "The federation hasn't reached that far but the emirates are one entity and things will be resolved soon, God willing," he told reporters on the sidelines of a conference.

Further, Economy Minister Sultan bin Saeed Al Mansouri said he is confident DW will reach an agreement with creditors. "They should, like everyone else," he said in Dubai.

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