Dubai World, a state-owned enterprise, has requested to reschedule its USD 80 billion of debt that has been used to fuel the construction boom in the last 4 years. With property prices down by 50% from its 2008 peak, it currently has trouble servicing its loan.
Analysts fear that this event might trigger a series of defaults by other emerging economies. This has caused the spread between US Treasuries and developing nations' bonds to increase by 14 basis points. However, many governments believes that this crisis is "containable".
No comments:
Post a Comment