Final answer:
The Dubai debt crisis was resolved by restructuring the bond issue, which is a true statement. Dubai restructured its debts by extending the maturity dates and changing the terms to manage its financial obligations better after the 2008–2009 global financial crisis.
Step-by-step explanation:
The student's question asks whether the Dubai debt crisis was resolved by restructuring the bond issue by extending the terms and maturity of the bonds. The correct answer is A. True. The Dubai debt crisis indeed involved the restructuring of its debt obligations. This process included extending the maturity dates of bonds and loans, which effectively stretched out the repayment schedule and provided Dubai with more time to manage its financial challenges.
Dubai was hit hard during the global financial crisis of 2008–2009, resulting in a significant shock to its real estate market and substantial debt levels. The government-owned conglomerate, Dubai World, with its vast real estate projects, was at the center of the crisis. To alleviate the crisis, Dubai received support from Abu Dhabi and the UAE Central Bank and undertook a series of restructuring measures to improve its financial situation.
Debt restructuring typically involves changing the terms of a debt agreement to reduce the burden on the borrower and avoid default. For the Dubai debt situation, restructuring included renegotiating interest rates, extending the loan terms, and sometimes writing off parts of the debt. This brought more stability to Dubai's financial system and restored confidence among investors and institutions. However, consequences such as impacts on credit ratings and investor relations had to be managed as well.