Dubai finds temporary solution to liquidity problem
World financial markets are poised to react to last week’s news that Dubai World, the financial conglomerate largely responsible for Dubai’s rapid expansion, will request an extension to pay back some $60 billion in loans. Dubai has the largest population in the United Arab Emirates and up until recently has enjoyed excesses such as building 7 star hotels on artificial islands; the Gulf nation is now trying to figure out how to surf its way through a major debt crisis.
On Sunday, the United Arab Emirates’ central bank announced that they would protect any banks operating in Dubai. We turn to New York Times financial correspondent Landon Thomas, Jr. to discuss the troubles a possible loan default from Dubai could spell for the rest of the world.
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