Posted on 11/30/2009 6:52:54 AM PST by FromLori
Dubai's government will not guarantee the debts of state-owned Dubai World, a senior finance official said on Monday.
"Creditors need to take part of the responsibility for their decision to lend to the companies. They think Dubai World is part of the government, which is not correct," Abdulrahman al-Saleh, director general of Dubai's department of finance, said on Dubai TV, according to Reuters.
The comments raised worries about how creditors and companies with exposure to Dubai World will fare in a restructuring without a government guarantee of the debts.
Dubai World, the conglomerate behind the emirate's astonishing rise, triggered a collapse in world stock markets last week when it said it would delay repaying its debts, raising fears about the knock-on effects on the fragile global recovery. It has run up debts of £36bn creating the emirate's "Palm Islands" and buying stakes in firms such as the London Stock Exchange and US department store Barneys.
Earlier, stock exchanges in Dubai and Abu Dhabi suffered record one-day losses on fears over debt defaults, pushing London's FTSE 100 index lower in morning trading.
(Excerpt) Read more at telegraph.co.uk ...
ping and related
http://www.bloomberg.com/apps/news?pid=20601087&sid=aFxSdvgvqhps&pos=2
http://www.bloomberg.com/apps/news?pid=20601087&sid=ah_Axk.Aj18k&pos=3
http://www.bloomberg.com/apps/news?pid=20601087&sid=ap00UkEbLDqk&pos=4
"Creditors need to take part of the responsibility for their decision to lend to the companies. They think Dubai World is part of the government, which is not correct," Abdulrahman al-Saleh, director general of Dubai's department of finance, said on Dubai TV, according to Reuters.
Ooops... time to bail and bail real fast... LOL...
And Citibank recently loaned them 8 billion(of bailout/ taxpayers money)
Those investors will get a reality of what working with Islamist Slave Masters is like can’t say I feel sorry for them but for us the taxpayers we own the majority share of CIT so we lose again. Thanks Bankster crooks!
http://www.independent.co.uk/opinion/commentators/johann-hari/the-dark-side-of-dubai-1664368.html
Wonder how many celeb's are going to take a serious bath after buying "islands"..
Of course, the slezeballs in the Dubai Gov. flew investors in, and comped them to 5 star hotels, dinners, niteclubs, etc ;-)
Suckers!
How can we the taxpayers bail? Be nice but we get to take it in the rear again.
Think what suckers we the taxpayers are we didn’t get the 5 star treatment just the bill!
And Citibank recently loaned them 8 billion(of bailout/ taxpayers money)
_______________________
In such case there have to be tens of millions in bribes kickbacks and deposits into offshore bank accounts.
CITI cannot possibly be so stupid
How can we the taxpayers bail? Be nice but we get to take it in the rear again.
I was talking about individuals here and institutions... better "git" while the "gitting is good"... LOL...
As for the taxpayer, they pay and pay and pay... the way it's always been... :-)
I remember those same stories. There was one article about something like 4,000 cars that had been abandoned in the parking lots at Dubai’s airport — mainly by immigrants from India and other parts of Asia who had made up a large portion of the country’s work force during their recent boom.
True maybe it is Karma for those investors. I said that not so much to you Star but so that others realize we too the taxpayers will take a hit being the majority owner of CIT.
I like this one better
Send a gunboat to shell the Emir’s Palace - that’s what we would have done a century ago.
Works for me but doubt the usurper in chief will do it
On Friday, I provided some specifics about who had loaned Dubai money, and the potential fallout from Dubai’s debt crisis.
But I just found another interesting tidbit.
Specifically, 7 Days - one of the largest papers in Dubai - wrote in March:
The US public will be “outraged” by Citibank’s $8 billion loan to Dubai just six weeks after the bank was bailed out, US House of Representatives domestic policy subcommittee chair-man has said. Dennis Kucinich commented on the Dubai loan and other US banking investments as a congressional panel released a report that strongly questioned Citibank’s actions. The report, shown to 7DAYS, cites the Dubai loan as the largest of the “questionable transactions” by banks after the US government bailed them out. It notes that the loan to Dubai’s public sector came on December 14, just six weeks after the US government gave Citibank a $25 billion bail-out.
The report quotes Win Bischoof, then chairman of Citi, as saying the bank agreed to the Dubai loan because “we continue to place the Gulf region among our globally most significant markets”. The report also questions JP Morgan’s $1 billion investment in India and Bank of America’s $7 billion investment in China. “When the American people find that their tax dollars, which were supposed to be used to get us out of this financial crisis, are instead being used to ship jobs and investments overseas, there will be outrage,” Kucinich said. The report notes the loans were not illegal and that it is not known if they were directly funded by bail-out funds. A Citibank official was quoted at the time as saying the $8 billion came from the bank’s own funds and third party sources. The report was released as the committee prepares to question banking chiefs about their use of bail-out funds.
Will Citi be repaid in full on its $8 Billion loan, which apparently came out taxpayer bailout money?
http://www.zerohedge.com/article/what-happens-citibanks-8-billion-loan-dubai
Unfortunately, we still owe the Chinese for those!
So much for the Arab Hong Kong!
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