S Korea to launch daily monitoring system on Dubai fallout

13:13, November 30, 2009      

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South Korea plans to operate a daily monitoring system on the Dubai fallout on the nation's financial markets in a bid to shield the economy from a possible turmoil, a high-ranking government official said Monday.

"We will establish a daily monitoring system to thoroughly check up on each related area until the Dubai crisis is clearly put an end to," Vice Finance Minister Hur Kyung-wook told an emergency meeting attended by high-ranking officials from the central bank and economy-related ministries.

According to Hur, it is highly unlikely that the Dubai debt fallout would grow into a global financial crisis as markets at home and abroad are witnessed to be calming down.

Hur, however, said as long as signs of uncertainty linger in the economy, the government should be ready to brace for the worst case of its scenarios.

His remarks came after Dubai World, a UAE-based financial firm, announced a six-month repayment moratorium on billions of dollars in debt Wednesday, triggering jitters in major financial markets around the world late last week.

Analysts and investors raised fears on whether it may replicate the case of Lehman Brothers collapse last year, but the global markets have been showing signs of recovery.

Source: Xinhua
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