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Tags: Dubai.debt | panick | banks

UAE Moves to Ease Bank Credit Panic

Sunday, 29 November 2009 11:06 PM EST


Trying to prevent a run on its banks and possible financial turmoil, the United Arab Emirates said on Sunday that it would lend money to banks operating in Dubai amid concerns about excessive borrowing around the world.

The move by the group’s central bank was an attempt to head off the kind of crisis of confidence that froze credit markets last year and brought the global economy to the brink of failure, threatening everyone from hedge fund billionaires to retirees who had their savings in supposedly safe investments.

Central bankers and government officials around the world will watch for signs that fears are spreading or are being contained as markets open in Europe and New York. They are looking to see whether investors begin taking money not just from companies and banks connected to Dubai, but also from other countries that may have taken on more debt than they can afford to repay.

Asian markets in their first hours were up more than 2 percent on Monday morning.

Last week, investors fled the stocks of banks with outstanding loans to the tiny emirate and its investment arm, Dubai World. Now, analysts will be watching to see whether investors desert other highly indebted companies.

To read full New york Times story — Go Here Now.

© Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


MiddleEast
Dubai.debt,panick,banks
213
2009-06-29
Sunday, 29 November 2009 11:06 PM
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