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Dubai, May 9 (PTI) Dubai World''s talks with creditors to restructure over USD 14 billion of debt may be complicated by the Greek debt crisis as banks find it difficult to agree on the terms outlined by the government-owned conglomerate, according to a report. Dubai is running out of time to agree a deal with creditors after it unveiled a USD 9.5 billion rescue plan for Dubai World and its property unit Nakheel in March, the Zawya Dow Jones said quoting various bank officials. "The Greece dynamic is more of heightened risk aversion perhaps globally. Banks may find it increasingly challenging to settle on initial terms set forth by Dubai World, which already appear tough to digest," Saud Masud, head of research and senior real estate analyst at UBS in Dubai. Creditors to Dubai World are still in talks about the interest rate offer for the new debt issued under the plan. The cost of insuring Dubai''s debt measured by credit default swaps, or CDS, closed Friday at 464.8 points, up from 415 points on April 30. By comparison, spreads on gas-rich Qatar''s CDS rose to 90 basis points from 80 points in that time. A deal is likely to be finalised within two weeks, but concerns over Greece could mean that banks push for a more favourable deal. The deal covers USD 14.2 billion of debt that Dubai World owes to creditors besides the government. The Dubai government, through the Dubai Financial Support Fund, has proposed to convert USD 8.9 billion of debt claims into equity, subordinating its claims to other creditors, Dubai World said in March. Analysts have warned that the Greek crisis will make it harder and more expensive for companies in the region to raise funds. "Across the world, including the Gulf Cooperation Council, borrowers now face higher costs if they wish to tap the international financial markets," Saudi-based investment bank Jadwa Investment said in a note today.
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