Potential Negative Effect of the Dubai World Debt Proposal

JP Morgan Chase HeadquartersThe Dubai World debt proposal that is currently under consideration by top lenders holding notes from this giant, government-backed real estate developer, is generating a lot of buzz in international financial markets.

One creditor, the American-based JP Morgan, commented on the potential “negative” effect of the Dubai world debt proposal for banks. That comes because the loans the Dubai government plans for debt restructuring includes notes with five year and eight year maturities.

How long can Dubai world investors wait on a return on their investment? Is this government-backed proposal really appropriate to spur the RE recovery?

Comments

[Rupert Neil Bumfrey]

I think you remain stuck in the Utopian world of Ayn Rand and many other misguided folks, if you are in the camp that expects:

"Is this government-backed proposal really appropriate to spur the RE recovery?"

The whole economy needs priming, not the overblown Real Estate market!

I believe the Government of Dubai is on the right path, with policy being guided by the likes of Mohammed Al-Shaibani, not the erstwhile "Masters of the Universe" who spurred the bubble to implosion!