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Marina residences at ‘The Palm Jumeirah’ development, also known as Palm Island, built by property developers Nakheel PJSC in Dubai is seen in this undated handout photo released to the media on Nov. 27, 2009. Source: Nakheel via Bloomberg

Nov. 30 (Bloomberg) — Dubai’s government said it hasn’t guaranteed the debt of Dubai World, the state-controlled holding company struggling with $59 billion in liabilities, and that creditors must help it restructure.

“The company received financing based on its project schedule, not a government guarantee,” Abdulrahman Al Saleh, director general of the emirate’s Department of Finance, said in an interview with Dubai TV, when asked whether the government was backing the debt. “Lenders should bear part of the responsibility.”

Dubai’s government said Nov. 25 that Dubai World would seek a standstill agreement with creditors and an extension of loan maturities until at least May 30, 2010. The announcement led to the biggest declines in Asian shares in three months last week and Europe’s worst rout since April. Investors were concerned the proposal risks triggering the biggest sovereign default since Argentina in 2001.

Dubai shares tumbled and Abu Dhabi’s stock index today fell the most in at least eight years on the first trading day since the announcement.

Nakheel PJSC, Dubai World’s property unit whose $3.52 billion Islamic bond is due Dec. 14, asked the Nasdaq Dubai stock market today to suspend its securities “until it is in a position to fully inform the market.”