U.S. bank exposure to the United Arab Emirates is “a very manageable” $9.9 billion compared with European banks that have lent almost nine times as much, according to CreditSights Inc.
Citigroup Inc. is owed about $5.9 billion and JPMorgan Chase & Co. approximately $2.5 billion as of the fourth quarter of 2008, CreditSights analysts led by David Hendler in New York wrote in a Nov. 29 report.
Dubai World, a state-owned holding company struggling with $59 billion of debt and other liabilities, said Nov. 25 it would seek a standstill agreement with creditors and an extension of loan maturities until at least May 30, raising prospects of losses for banks. Dubai is one of seven emirates of the U.A.E.
“We believe the U.S. banks’ exposure to the U.A.E. is a very manageable $9.9 billion,” the CreditSights analysts said.
The analysts using data from the Bank for International Settlements, Emirates Banks Association and company filings said no breakdown is available for Dubai itself.END
No comments:
Post a Comment