Forex Notes

Investors Are Reminded Of The Debt Problem In Dubai

The cost of insurance bonds in Dubai from defaulting back to the November level, shares Dubai companies fell on Sunday by an average of 3,5% because of fears of investors about the debt problems of the emirate.

The Wall Street Journal reported that the bond holders of state holding company Dubai World, which is trying to restructure the debts of 22 billion dollars, will be offered to delay for 7 years at 40% debt write-off. Sam Dubai World declined to comment on a proposal to creditors.

In November, Dubai World has asked creditors to postpone for six months of debt service for the negotiation of the restructuring. Arisen in connection with the panic among investors has helped to stop the provision of assistance to Dubai in the amount of $ 10 billion by neighboring Abu Dhabi. Help neighboring emirate allowed state-owned companies to pay, in particular, 4.1 billion of Islamic sukuk bonds.

Reports of unfavorable conditions, creditors forced the restructuring of investors concerned about the last few days the situation around Greece, to recall the debt problems of Dubai. Price of credit default swaps rose on Friday in Dubai for 12 points - to 631.08 basis points, its highest level since 27 November, Interfax reported with reference to agency Bloomberg.