Dubai World-type debt crises to continue in 2010-11 - Kudrin

Subscribe
US
India
Global
Events like the Dubai World debt crisis are likely to continue next year and possibly in 2011, the Russian finance minister said on Wednesday.

Events like the Dubai World debt crisis are likely to continue next year and possibly in 2011, the Russian finance minister said on Wednesday.

"Tension on the [global] financial market remains. We should be getting ready for that," said Alexei Kudrin.

He did not indicate whether such economic meltdowns could also be expected in Russia.

Dubai World, a state-controlled conglomerate with interests in financial services and property, asked last Wednesday for repayment of its $60 billion debt to be suspended for six months. The news triggered stock market declines in several countries.

Investors have since rushed to withdraw funds from emerging markets, including from Russia. Last Friday, the ruble tumbled by almost one ruble to the dollar and the euro, causing fears of a new economic meltdown.

However, other experts say the issue is unlikely to cause a new crisis wave.

Kremlin economic aide Arkady Dvorkovich said earlier on Wednesday the Dubai debt crisis is no worse than the financial difficulties recently encountered by other large companies.

"Some short-term disturbances have already occurred and they may still be in place for some time, but this will not prompt a new wave of crisis," he said, adding "as far as the Dubai company is concerned, it has sufficient assets to settle the situation."

MOSCOW, December 2 (RIA Novosti) 

 

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала