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Fri 27 Nov 2009 01:41 PM

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Need to assess Dubai before reacting – India cenbank

Indian stocks tumble on Friday, the rupee weakens and bond yields fall.

The governor of India's central bank on Friday said an assessment of the impact of Dubai's debt problems was needed before deciding on a response.

"We should not react to instant news like this. One lesson of the crisis is that we must study the developments, and I think we must measure the extent of the problem there and how it impacts India," D Subbarao told reporters in the southern Indian city of Hyderabad.

"I have requested my officials to study this, and if necessary we will certainly communicate in the public about what the implications likely are," he added.

Indian stocks tumbled on Friday, the rupee weakened and bond yields fell as Dubai's debt problems sparked concerns about corporate exposure and the risk of foreign investors repatriating funds.

Dubai said on Wednesday it wanted creditors of Dubai World and property group Nakheel to agree a debt standstill as it restructures Dubai World, the conglomerate that spearheaded the emirate's breakneck growth. (Reuters)

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Toby James 10 years ago

Yes, let the dust settle, let the aftershocks subside, and then take a measured approach. Dubai isn't going anywhere, this isn't the first unpaid debt in the history of mankind, nobody has died! On the other side of the (unpaid) coin, I hope that Dubai Inc has learned a precious lesson... That the laws of economics do apply to Dubai too. I pray this is the case as I remain a steadfast stake-holder in Dubai.

GMX 10 years ago

Why is there such a hue and cry about Dubai.Like Toby stated is this the end of the world. The western media is all out to get Dubai specially WEST incorporated. Why they dont look whats happening in the UK.The bad press wont get them anywhere. Appreciate that Dubai has done things in the last 6 years what no other countries can acheive. This is a small emirates we all learn by our mistakes. The Dubai Government is taking all measures to get over this . What about Lehman Brother Crash when the Crisis started . Why the the big brother USA could not forsee these. DUBAI WILL OVER COME ALL THESE