Monday, December 14, 2009
Christina Koletsa Hot In Esquier
Stock markets have reacted positively on Monday to Dubai Government's announcement of neighboring Abu Dhabi granting a $10 billion loan to ease part of Government's conglometate Dubai's World's $60 billion debt and its property unit's Nakheel.
Part of this loan will be used to repay Nakheel Islamic bond, which matures today, and the rest of the bailout will serve to finance the needs of Dubai's Wold up to April 2010.
Dubai's government shocked stock markets late November, applying for a delay on the payments of $26 billion out of $60 billion debt acquired by Dubai's World, which reactivated fears about the strength of economic recovery.
Stock markets in the Area have reacted to the news with large advances, Dubai Financial Market's benchmark index opened with a 10% rise, while Abu Dhabi's main market rose 6.1% on early trade.
Markets in Asia turned ti slight advances after negative openings, with Japanese Nikkei Index picking up to close practically at opening levels, while and South Korean Kospi Index closed 0.5% up and Hong Kong's Hang Seng Index edged up 0.1%.