Dubai World's Debt Freeze 'Carefully Planned'.

[elleng]

A top Dubai finance official said the emirate fully expected fallout from its debt problems and assured foreign creditors that Dubai World's request to postpone payment on some of its $60 billion in debt was ''carefully planned.''

The comments by Sheik Ahmed bin Saeed Al-Maktoum, the chairman of Dubai's Supreme Fiscal Committee, came as world markets reacted in shock to what some analysts indicated amounted to a default Dubai World, the city-state's key engine of growth with interests ranging from ports to real estate.

Ahmed said the emirate's leadership thought long and hard, weighing creditors' interests, before announcing they were seeking a ''standstill'' on Dubai World's debt until at least May.

''Our intervention in Dubai World was carefully planned,'' Ahmed said in the statement released late Thursday. ''The government is spearheading the restructuring of this commercial operation in the full knowledge of how the markets would react.''

http://www.nytimes.com/aponline/2009/11/27/business/AP-ML-Dubai-Debt.html

[Demeter]

1. I'll Bet It Was--So They Could Be First in Line

because they'll get the best treatment and concessions. When it's the US turn, watch out!

[jimlup]

2. What is the root cause of the Dubia crises?

Obviously they borrowed way beyond their sustainable income but what change in circumstances has prompted the crises?

[elleng]

3. May have been just gradual.

More:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x498427