Dubai debt fears 'continue to impact on European markets'

Stock investors continued to be cautious today (November 30th) due to the concerns surrounding Dubai World’s debt situation.

Last week, the state-owned conglomerate revealed that it was delaying repayment on liabilities totalling $59 billion (£36 billion), an announcement that produced shockwaves around the financial world and sent stock markets plummeting.

Commenting on another day of uncertainty that saw European markets fall by nearly over per cent, City Index’s market strategist Joshua Raymond commented: ’The problems are not going to go away until some transparency can be gained as to the larger implications of the delay in debt payments by Dubai World.

’Right now, it’s the only story in the headlights for investors to focus on.’

Abdulrahman al-Saleh, director general of Dubai’s department of finance, said in an interview on Dubai television today (November 30th) that the government will not guarantee Dubai World’s debts.

He claimed that creditors should take some of the responsibility and assist in the company’s restructuring.
ADNFCR-2318-ID-19487183-ADNFCR