Dubai menaces the world's financial markets

The largest state enterprise of the Arab Emirate Dubai, the holding company Dubai World, is in serious financial trouble. This will have dire consequences for international finance markets, writes the daily NRC Handelsblad. "The first consequence concerns loans granted by Abu Dhabi. This year emergency loans alone amounted to 15 billion dollars. ... The financial markets are far too interwoven for the consequences of such a situation to remain at the local level. As a result Greek debt securities came under pressure when the news about Dubai ... came out. It is a precondition for global rescue operations during the financial crisis ... that liabilities should be secure both for the defaulting banks as well as for investors. But things are not so simple, it turns out. Dubai itself will not go bankrupt. But the troubles Dubai World is facing can shatter the feeling of confidence in state securities."

» full article (external link, Dutch)
More from the press review on the subject » Financial Markets, » Global, » Middle East

» To the complete press review of Friday, November 27, 2009