RBS chief backs restructuring of Dubai World

ROYAL Bank of Scotland chief executive Stephen Hester has joined other creditors in lending his support to the $9.5 billion (£6.3bn) restructuring of Dubai World.

Hester told regional newspaper Gulf News that the plan has sent out the "right signals".

RBS was among the seven-member panel which held negotiations between the conglomerate and its other creditors, which total more than 90.

"As one of the lenders to Dubai World, we view the recent debt restructuring offer as a positive development," Hester said. "In the overall context of Dubai's global credit standing, the move has sent out the right signals."

Hester's comments come a day after two other creditors, HSBC and Abu Dhabi Commercial Bank, lent their approval to the plan.

Earlier this week Dubai World cleared the board of its property operation Nakheel as part of the plan to restructure its $26bn debt.

Under the plan, lenders – including RBS and Lloyds Banking Group – will get their money back in five to eight years.