Borse Dubai, a government-owned exchanges group, is expected to finalise a $2.5bn loan today, a vote of support for the emirate amid concerns the commercial hub of the Gulf could default.
The company, which controls Dubai's two equity markets and has stakes in the London Stock Exchange and Nasdaq, needs to pay off a $3.4bn (€2.7bn, £2.4bn) loan next week, the first big test in 2009 of Dubai's ability to refinance the $20bn in loans that mature this year. The fact that Dubai has met the challenge of opening clogged credit markets should go some way to assuaging investor concerns about its risk of default.
Dubai's globalised economy has been hit hard by the credit crunch.
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