Who faces greatest risk in Dubai debt crisis?

10:32, November 30, 2009      

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Since the Dubai debt crisis erupted last Thursday, who will become the biggest risk takers in the crisis has attracted much attention. At present, according to media, the Royal Bank of Scotland (RBS) is Dubai's largest creditor institution. HSBC Holdings is the largest lending institution to the UAE, and it could stand to lose more than 600 million U.S. dollars because of the Dubai World debt. Britain has become the biggest risk taker among the United Arab Emirates creditors in the Dubai debt crisis.

As at the end of June this year, Europe's largest financial institution HSBC Holdings has lend 159 billion U.S. dollars to the UAE, bearing "the largest absolute risk exposure." This figure is even more than the following lending institutions the Standard Chartered Bank, Barclays and Royal Bank of Scotland Group's loans to Dubai World combined. According to Goldman Sachs Group analyst Roy Ramos, HSBC Holdings suffered loss of up to 611 million U.S. dollars due to delayed repayment from Dubai World, and Standard Chartered Bank suffered loss of 177 million U.S. dollars.

From the point of view of creditor's financial risk exposure, as at the end of March this year, the United Kingdom ranked No.1 with 51.2 billion U.S. dollars, followed by the United States with 13.4 billion U.S. dollars. France, Germany, Japan and the Netherlands follow and all their financial risk exposure in the United Arab Emirates have reached more than 50 billion U.S. dollars.

By People's Daily Online
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