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FRONT PAGE | Sunday, November 29, 2009 | Email | Print |


Dubai jitters: Some adverse impact likely, says Pranab

PTI | Chandigarh

Asserting that there is no need to press the panic button, Finance Minister Pranab Mukherjee on Saturday said the Dubai debt crisis will not have “earth shaking” impact on the country’s economy.

“The full impact of the Dubai debt crisis is yet to be assessed, but there is no need to press the panic button,” Mukherjee told reporters on the sidelines of a function here. Buttressing his point, he said “first of all, the amount is small and secondly, the exposure of our banking systems to the Dubai financial systems is limited.”

He, however, said that “some adverse effect” will be there initially on the stock markets, as was felt on Friday. The Finance Minister has also opined that the crisis will not have much impact on the country’s exports to the region.

Mukherjee, however, said that the debacle will impact the repatriation of foreign exchange from there and joblessness in the Gulf city-state.


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Bullet Dubai
By krishnan on 11/29/2009 7:30:36 AM

The Dubai debacle arose primarily because of overleveraging. that is more ambitous expansion by heavy borrowals by Govt main investment arm Dubai world which exceeded more than Dubai's national income. But the corresponding value of assets fell leading to negative returns and hence default situation.

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