Wednesday, 12 January 2011

$70bn of debt due in the UAE this year to force major asset sales « ArabianMoney

Standard Chartered Bank estimates that the amount of short term debt due for repayment this year in the UAE totals around $70 billion, a considerable amount more than the $20 billion reckoned to be owed by the emirate of Dubai. The bank sees a round of further asset sales and bank write-downs as inevitable.

Speaking to Bloomberg yesterday, Nafees Akbarali, regional head of fixed income said: ‘With significant debt maturities coming into the year and concerns over transparency for some GCC economies, risk premiums will build up and this will serve to push up borrowing costs… We’re going to have to see more asset sales this year and going into next year’.

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