Dubai World To Meet
Creditors As Crisis Clouds UAE Day
Dubai's
debt problems clouded national day celebrations in the United
Arab Emirates on Wednesday as government-owned Dubai World plans
meeting its main creditors to discuss a request to delay payment
on a $26 billion debt that has shaken global markets and
confidence in the Gulf Arab business hub.
Flags, fairy lights and fanfare marked the UAE's 38th
anniversary even as questions are raised about whether Abu
Dhabi, the oil-producing powerhouse of the seven-emirate
federation, will rescue its ambitious neighbour, perhaps
exacting a political price.
Dubai's request for a payment delay on Dubai World’s 26 billion
Dollars debt has exposed the frailties of "quasi-sovereign"
lending.
‘All is well’
Abu Dhabi's ruler, who is also the president of the UAE,
said on Tuesday that the national economy was in good shape, but
made no comment on the debt woes disclosed by Dubai on November
25.
Next week's meeting would be Dubai World's first formal talks
with key lenders since the conglomerate that spearheaded the
emirate's rapid growth disclosed its debt woes.
London-listed Standard Chartered, HSBC, Lloyds and Royal Bank of
Scotland, along with local lenders Emirates NBD and Abu Dhabi
Commercial Bank are said to be on the creditors’ panel.
Dubai's problems had raised fears of a renewed global crisis,
but there was little evidence of concern on the streets, where
thousands of balloons in the black, white, green and red of the
United Arab Emirates flag were released to mark the federation's
national day.
REUTERS/Yinka
