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No guaranties for Dubai World debt

30.11.2009 | Engleza Email | Print

The Dubai government has said in a statement that it will not guarantee the debt of Dubai World. The information came after stock markets in Dubai and Abu Dhabi saw sharp falls.

"[Creditors] think Dubai World is part of the government, which is not correct," said finance minister Abdulrahman al-Saleh.

Abu Dhabi`s main stock market lost a record 8.3%, while Dubai dropped 7.3% - the most in a year.

"Creditors need to take part of the responsibility for their decision to lend to the companies," Mr al-Saleh told Dubai Television.

The central bank of the United Arab Emirates (UAE) set up facilities to provide banks with extra liquidity, as it seeks to battle perceptions that Dubai cannot support its own companies.
 



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