Abu Dhabi gives Dubai $10 billion to cover debt

[cal04]

Source: Associated Press

Dubai's government says it has received $10 billion in emergency funds from oil-rich neighbor Abu Dhabi that will go toward paying debts owed by its struggling Dubai World conglomerate.

Some $4.1 billion of the money will be used to pay off a pile of debt from Dubai World's Nakheel property division that comes due Monday.

Dubai's ability to repay those funds had been seen as a key test of the debt-laden emirate's creditworthiness.

The UAE central bank, based in the federation's capital Abu Dhabi, also says it is prepared to provide support to local banks.

Read more: http://news.yahoo.com/s/ap/ml_dubai_meltdown

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Dubai gets $10 billion from Abu Dhabi to pay Nakheel bond
http://www.marketwatch.com/story/dubai-gets-10-billion-from-abu-dhabi-to-pay-nakheel-bond-2009-12-14

[Zynx]

1. That's one way of handling it.

[Turborama]

2. Possibly good news for "Hundreds of thousands — perhaps even millions — of Asian families"

Workers who send money home hurt most by Dubai debt crisis

Hundreds of thousands — perhaps even millions — of Asian families stand to be caught in the shock waves from the Dubai debt crisis.

But there is little agreement among analysts about the extent of the collateral damage, especially among the families of Asians who make up two-thirds of Dubai’s workforce of 4.5 million foreigners.

The most likely outcome is that South and Southeast Asia — the prime destinations for the tens of billions of dollars in remittances sent home by Dubai’s overseas workers every year — will not take a general hit.

But some regions and some industries are likely to be hit hard.

The Indian state of Kerala, for example, depends for 22 per cent of its gross income on remittances from its people working in the seven states of the United Arab Emirates (UAE). Most of them work in Dubai’s now floundering construction industry.

Full article: http://www.vancouversun.com/business/Asia+Pacific+Report+Workers+send+money+home+hurt+most+Dubai+debt+crisis/2337007/story.html

[JCMach1]

3. Shk. Khalifa blinked

However, Shk. Mohd. of Dubai is now thoroughly humiliated... rightfully so as he was building an unsustainable fantasy world.

[enlightenment]

4. Yep.

Little 'brother' with the big mouth and the cocky attitude had to be rescued by big 'brother' - again.

[JCMach1]

5. Shk. Mohd. al Maktoum is a trained economist of the Milton Friedman variety

I believe he did his education at the London School.

He has totally screwed-up his kingdom with those wonderful free market theories.

[enlightenment]

6. Just goes to show that a great school can churn out

as many idiots as a diploma mill. Intelligence without common sense is worthless.