A palpable sense of anger mingled with frustration in Dubai on Thursday as bankers and analysts tried to digest the implications of Wednesday’s shock announcement that Dubai World, a strategic developer, was seeking a standstill on its debt.
“The credibiilty of these guys has been found wanting. Whether there is a default or not the biggest issue is going to be credibility,” one senior analyst at an international bank, who had been talking to international and local clients overnight, said in Dubai.
“There is some suggestion that Dubai may have wanted to go it alone but you don’t go it alone when, rightly or wrongly, you have this bellweather bond payment falling due,” he said, referring to a $4bn payment due by Nakheel, a real estate developer, next month.
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