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DBS says total Dubai exposure at S$1.8 bln, none t

DUBAI - The government of Dubai does not guarantee the debt of Dubai World, a senior finance department official said on Monday, effectively washing its hands of the woes facing the embattled conglomerate.

'It is true that the government is the owner, but as the firm has several activities and exposed to different sorts of risks, the decision was from the day of its establishment that the company would not be guaranteed by the government,' head of the Dubai Department of Finance Abdulrahman al-Saleh said in an interview with state-owned Dubai Television. -- AFP

 

Business Times - 30 Nov 2009
DBS says total Dubai exposure at S$1.8 bln, none to Nakheel

By ANGELA TAN

DBS said its total exposure to Dubai is about S$1.8 billion (US$1.28 billion).

The bank believes that the situation is manageable as a substantial portion of this is to Dubai-owned companies operating in Asia that are sound, such as Labroy and South Beach, which is collateralised.

As of Monday, the only credit that is captured under the standstill notice is a S$558 million (US$400 million) bilateral loan to Dubai World Finance, which represents 0.2 per cent of DBS' total balance sheet.

The bank has no exposure to Nakheel.

DBS' exposure to the entire Middle East region accounts for around 2 per cent of its balance sheet.

 

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