Dubai Fears Subside as Restructuring Averts Bailout
So Dubai hasn’t quite sunk into the quicksand. And the London stock market rallied this morning as the City welcomed the start of negotiations between Dubai World and its lenders over $26bn (£15bn) of debts. Avoiding mad panic and bailouts, Dubai has resorted to good old fashioned capitalism to sort itself out. Bloomberg: Dubai World began talks with banks to restructure $26 billion of debt, including $3.5 billion owed by property unit Nakheel, and said the remainder of its liabilities are …
So Dubai hasn’t quite sunk into the quicksand.
And the London stock market rallied this morning as the City welcomed the start of negotiations between Dubai World and its lenders over $26bn (£15bn) of debts. Avoiding mad panic and bailouts, Dubai has resorted to good old fashioned capitalism to sort itself out. Bloomberg:
Dubai World began talks with banks to restructure $26 billion of debt, including $3.5 billion owed by property unit Nakheel, and said the remainder of its liabilities are on “a stable financial footing.”
Debt from subsidiaries including Infinity World Holding, Istithmar World and Ports & Free Zone World will be excluded from the negotiations, Dubai World, one of the emirate’s three main state-related holding companies, said in a statement. The cost to protect Dubai debt against default fell to the lowest since Nov. 25. Dubai’s main equity index dropped 6.6 percent.
More Top Stories
- Doom Replaces Boom in Dubai
- Secret Loans to RBS and HBOS Revealed
- UK Commercial Property – Time to Buy
- Banks Win Again – Overdraft Charges are Legal
- What’s the Latin for “Charming Hedge Fund Boss”
- Business School Dirty Emails Copied to … Everyone
- 30 global financial institutions on risk list
