More than two years on from Dubai World, and Dubai is still struggling to sort out its debt.
Investors were shocked when government-owned Dubai World declared a payment standstill on its debts in Nov 2009 — a brutal tarnishing of the ”sovereign halo”, which investors thought shone even on those borrowers whose debt did not have a solid sovereign guarantee.
A number of debt restructurings have taken place since then, including most recently for $2.5 billion in debt from Dubai International Capital (DIC). But banks are looking vulnerable.
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