Posted on 11/28/2009 9:09:06 AM PST by FromLori
Abu Dhabi, wealthy capital of the United Arab Emirates, will "pick and choose" how to assist debt-laden neighbor Dubai, a senior official said on Saturday, after fears of a Dubai default sent global markets reeling.
"We will look at Dubai's commitments and approach them on a case-by-case basis. It does not mean that Abu Dhabi will underwrite all of their debts," the official in the government of the emirate of Abu Dhabi told Reuters by phone.
Dubai's crisis exploded on Wednesday when the emirate, known for flashy lifestyles and the world's tallest building, said it would delay payment on debt issued by one of its flagship firms, angering investors and sending global markets sharply lower.
Selective assistance for companies in "Dubai Inc.," a network of quasi-sovereign industries, instead of blanket assistance, would serve a rude awakening to investors who for years assumed that the conservative Abu Dhabi provided a safety net for its racier neighbor.
"Some of Dubai's entities are commercial, semi-government ones. Abu Dhabi will pick and choose when and where to assist,"
(Excerpt) Read more at reuters.com ...
ping and related read through comments this is one of them
Damage Control team are hard at work... Just like after Lehman/Bear collapses.
I find this interesting:
NY times saying Citi Bank only has $1.9B under loan.
http://www.nytimes.com/2009/11/28/business/global/28dubai.html?hp
Dennis Kucinich says otherwise.
http://www.7days.ae/storydetails.php?id=75035&title=US+outrage+over+Citi+loan
Also related
Dubai debt woes may hit U.S. property market
http://www.reuters.com/article/newsOne/idUSTRE5AQ4G620091127
Wanna bet this somehow ends up on our tab?
Understanding that the USA has very small portion or beter yet fanicial exposure to the current adjustment. - relative to a large part of the finance pie here in Dubai. the impact will be minimal.
What is importanted to know is this is very in-line with the Dubai’s Modus operandi.
Arabs are fanatical when it comes down to the face-saving issues and the best part will be to see how Abu Dhabi handles the transaction.
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