Dubai: The cost of insuring Dubai's debt with credit default swaps increased on Thursday after an Abu Dhabi plan to inject 16 billion dirhams ($4.36 billion) into five of its banks further shook confidence in Dubai, bankers said.
The Abu Dhabi goverment announced on Wednesday it would lend cash to banks in the emirate, including National Bank of Abu Dhabi (NBAD), via Tier 1 capital notes to bolster confidence as loan defaults mount.
The move left markets wondering whether similar steps would take place in Dubai, where banks are struggling as the emirate's once-booming property sector faces a sharp correction that has prompted developers to scale back expansion and cut jobs.
No comments:
Post a Comment