Dubai World Seeks to Delay Debt Payments as Default Risk Soars – Bloomberg.com
” Dubai World, with $59 billion of liabilities, is seeking to delay debt payments…Dubai accumulated $80 billion of debt by expanding in banking, real estate and transportation before credit markets seized up last year…Dubai’s Supreme Fiscal Committee hired Deloitte LLP to lead the restructuring of Dubai World debt”
This is the state owned entity…it appears that there is a high probability that the country will default.
“Sheikh Mohammed turned to Abu Dhabi, the capital of the U.A.E. and holder of the world’s sixth-largest crude oil reserves, in February for a $10 billion bailout. The central bank, headquartered in Abu Dhabi, bought all of the 4 percent, five-year securities that Dubai sold on Feb. 23″…so Dubai is at the mercy of it’s neighboring countries.
Update: Reuters
Looks like default is a done deal:
"“Dubai World intends to ask all providers of financing to Dubai World and Nakheel to ’standstill’ and extend maturities until at least 30 May 2010,” the government said in a statement…”Abu Dhabi has been supportive of Dubai, but it appears this support is not enough for Dubai to meet its obligations on time.”"
Found at Wasatch Economics
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