DUBAI, Might 31 (Reuters) – Dubai might see a recession of round 5.5% in 2020 because it faces about $10 billion in debt maturities this 12 months whereas revenues are anticipated to drop in keeping with the sample of the 2009 disaster, Bank of America stated in a analysis notice. Measures to stem the unfold of the coronavirus have dealt a blow to Dubai’s financial system, bringing very important industries like tourism and aviation to a close to halt. Bank of America estimates that Dubai’s fiscal deficit might widen to $4.Four billion, or 3.9% of GDP, and may very well be as excessive as 5.3% if curiosity funds on a loan from Emirates NBD, Dubai’s largest lender, are included. Financing of the fiscal deficit or liquidity injection into government-related entities (GREs) will doubtless primarily be by way of loans from ENBD, Bank of America stated. Dubai might additionally draw on $1.Four billion in deposits at ENBD or difficulty privately positioned bonds. Worldwide Financial Fund information places Dubai authorities and GRE debt at 110% of GDP, unchanged in nominal phrases for the reason that 2009 world monetary disaster, however Bank of America stated “more corporate distress” was potential in a sustained downturn. “Sustained revenue losses could generate corporate solvency concerns if the recovery is shallow,” it stated. Citing IMF information, the bank stated Dubai and government-related entities face some $10 billion in debt repayments this 12 months. It stated it anticipated the federal government and banks to obtain help from oil-rich Abu Dhabi and the UAE central bank, if wanted, however that debt redemptions from Dubai authorities corporations within the coming years had been extra in danger. Sources informed Reuters this month that the governments of Abu Dhabi and Dubai had been discussing methods to prop up Dubai’s financial system by linking up belongings within the two emirates. Dubai denied the report. (Reporting by Yousef Saba; Enhancing by Nick Macfie)Our Requirements:The Thomson Reuters Belief Ideas.