Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

A landslide victory for the 'invisible candidate' in Algeria's Presidential polls

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014 (part 2)

Read more

MEDIAWATCH

Presidential adviser resigns over "shoe-shine scandal"

Read more

#THE 51%

Breaking stereotypes

Read more

#TECH 24

Galaxy S5 v. HTC One (M8): Which is the right one for you?

Read more

FRANCE IN FOCUS

New PM Manuel Valls outlines priorities

Read more

FASHION

Jean-Marc Loubier, bags and shoes.

Read more

ENCORE!

Hip-hop musician Beat Assailant on mixing the sounds of the city

Read more

  • French journalist tells of release from captivity in Syria

    Read more

  • South Korea ferry captain defends decision to delay evacuation

    Read more

  • Scores killed in South Sudan cattle raid

    Read more

  • PSG clinch fourth League Cup title after beating Lyon

    Read more

  • Le Pen’s National Front fail to woo Britain’s Eurosceptics

    Read more

  • In pictures: French kite festival takes flight

    Read more

  • VIDEO: Anti-Semitic leaflets in Eastern Ukraine condemned

    Read more

  • In pictures: Good Friday celebrated across the globe

    Read more

  • Bouteflika, the ghost president

    Read more

  • Does Valls’ upcoming Vatican trip violate French secularism?

    Read more

  • Ukraine separatists say ‘not bound’ by Geneva deal

    Read more

  • Abel Ferrara’s hotly awaited DSK film to premiere on web

    Read more

  • Obama signs bill to block controversial Iran diplomat from UN post

    Read more

  • Ukraine: ‘One bloody incident could scupper Geneva deal’

    Read more

  • Astronomers discover Earth-like planet that could support life

    Read more

  • Indian election: Votes for sale

    Read more

  • World honours Garcia Marquez’s magical literary legacy

    Read more

  • In pictures: Iranian woman pardons son’s killer at the gallows

    Read more

  • Algeria's ailing Bouteflika clinches fourth term amid fraud claims

    Read more

  • Top Hollande adviser resigns over conflict of interest accusation

    Read more

  • West African Ebola outbreak caused by new strain of virus

    Read more

Business

UAE stocks plunge as govt refuses to back Dubai World's debt

©

Text by News Wires

Latest update : 2009-11-30

Stock markets in Dubai and Abu Dhabi nosedived on Monday, with Abu Dhabi seeing a record 8.3% fall as the government of Dubai said it would not guarantee Dubai World’s debt, effectively washing its hands of the woes facing the embattled conglomerate.

AFP - The government of Dubai does not guarantee the debt of Dubai World, a senior finance department official said on Monday, effectively washing its hands of the woes facing the embattled conglomerate.
   
"It is true that the government is the owner, but as the firm has several activities and exposed to different sorts of risks, the decision was from the day of its establishment that the company would not be guaranteed by the government," head of the Dubai Department of Finance Abdulrahman al-Saleh said in an interview with state-owned Dubai Television.
   

"The company has dealt with other parties on these bases," he said, pointing out that it was in the past "obtaining finance based on its commercial position and the feasibility of its projects."
   
"There is a huge mix up in the media between Dubai World and the Dubai government," he added.
   
He said, however, that the reaction to the government announcement last week that it was restructuring Dubai World and intends to request a freeze on its debt repayments for at least six months, was "exaggerated and unjustifiable."
   
He insisted that the decision was correct and that it will be to the benefit of all parties involved.
   
"It was a wise decision that serves the interests of all parties in the long term, but not the short term," he said, acknowledging that it "might be inconvenient for some parties," in the short term.
   
Dubai sent jitters throughout the global stock markets last week as investors feared a looming international debt crisis. Its debt mountain is around 80 billion dollars, of which Dubai World is reportedly liable for around 60 billion dollars.
   
Stock markets in Dubai and Abu Dhabi plunged Monday by 7.3 percent and 8.3 percent respectively, on the first day of trading after a long holiday which started before Dubai's shock debt alert.

Date created : 2009-11-30

  • FINANCE

    Central bank to pump cash into Dubai lenders

    Read more

Comments

COMMENT(S)