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Discuss this article (7 Comments)World Bank chief says Dubai debt crisis can be curbed
by This email address is being protected from spam bots, you need Javascript enabled to view it on Saturday, 05 December 2009
DUBAI DEBTS: Government-owned Dubai World will meet its main creditors next week. (Getty Images)
Dubai's debt crisis will be contained and manageable, World Bank President Robert Zoellick said on Saturday.
"Because of the nervousness in financial markets, the events in Dubai caused everybody to take a second and third look at fragilities," he told reporters.
"I personally think that the Dubai financial problems will be contained and manageable."
Government-owned Dubai World will meet its main creditors next week to discuss a request to delay payment on $26 billion in debt that shook global markets and confidence in the Gulf Arab business hub.
However, the crisis is now expected to be largely contained to the emirate and a handful of large creditors with limited repercussions for debt markets much beyond the Gulf.
Zoellick said he did not expect the crisis to affect Indian markets. (Reuters)
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
optimism
Posted by georgy paul, kochi, india on Sunday 6 December 2009 at 22:01 UAE time
Edited by ArabianBusiness.com
On village roads frogs stand in front of 40 tonne truck thinking that they can withstand the weight of truck
world bank optimism is that of a frog standing infront of truk or real este people in dubai thinking that they can sell all they build
Posted by georgy paul, kochi, india on Sunday 6 December 2009 at 22:01 UAE time
Edited by ArabianBusiness.com
On village roads frogs stand in front of 40 tonne truck thinking that they can withstand the weight of truck
world bank optimism is that of a frog standing infront of truk or real este people in dubai thinking that they can sell all they build
Prepare for the worse.
Posted by Paul King, Dubai, UAE on Sunday 6 December 2009 at 21:01 UAE time
Transparency or no transparency, no one can halt this slow motion depression from doing it's work. Defaults, bankruptcies, corrections and job losses are just nature's way of dealing with life's excesses. No situation is so grave that it can not be made worse by incompetent politicians, leaders or World Bank Chief's!!
Posted by Paul King, Dubai, UAE on Sunday 6 December 2009 at 21:01 UAE time
Transparency or no transparency, no one can halt this slow motion depression from doing it's work. Defaults, bankruptcies, corrections and job losses are just nature's way of dealing with life's excesses. No situation is so grave that it can not be made worse by incompetent politicians, leaders or World Bank Chief's!!
To Billy...
Posted by Simon, Dubai, Dubai on Sunday 6 December 2009 at 13:11 UAE time
I agree with you...but my comments keep getting edited so I did it in a tongue in cheek and soft sarcastic manner. If you read between the lines...you'll see once you extract the tone of my tongue in cheek and sarcasim...it reads differently...well, I hope it does!
Posted by Simon, Dubai, Dubai on Sunday 6 December 2009 at 13:11 UAE time
I agree with you...but my comments keep getting edited so I did it in a tongue in cheek and soft sarcastic manner. If you read between the lines...you'll see once you extract the tone of my tongue in cheek and sarcasim...it reads differently...well, I hope it does!
DUBAI DEBT CRISIS WILL BE CONTAINED
Posted by Billy, Dubai, UAE on Sunday 6 December 2009 at 12:22 UAE time
Edited by ArabianBusiness.com
Guys you have missed the point. This debt crisis was not caused by the media - they simply reported it based on the information they were given. It was the complete lack of transparency and the mixed messaging that Dubai has given over the last few weeks that caused such a rumble around the world.
Dubai needs to focus very hard on its credibility to try and improve foreign investor confidence and such credibility does not come from pretending there is not a problem.
Posted by Billy, Dubai, UAE on Sunday 6 December 2009 at 12:22 UAE time
Edited by ArabianBusiness.com
Guys you have missed the point. This debt crisis was not caused by the media - they simply reported it based on the information they were given. It was the complete lack of transparency and the mixed messaging that Dubai has given over the last few weeks that caused such a rumble around the world.
Dubai needs to focus very hard on its credibility to try and improve foreign investor confidence and such credibility does not come from pretending there is not a problem.
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