Dubai The Latvian Look-Alike?

Dubai Holding Commercial Operations Group repays $250M, chips away at debt

DUBAI, United Arab Emirates — A holding company controlled by Dubai's ruler says it has repaid a $250 million bank loan, the latest attempt by the deeply indebted emirate to chip away at its credit obligations.
Dubai Holding Commercial Operations Group said Monday it repaid the loan to French bank BNP Paribas on the maturity date.
No further details were provided.
Credit rating agencies have cut their ratings on Dubai Holding and other state-linked companies this year amid concerns Dubai will be unable to repay its at least $80 billion worth of debt. Investors are especially awaiting news on a $3.5 billion loan due this year to another Dubai state company, Nakheel, as a sign of the city-state's creditworthiness.


  1. PW, there are talks about a double-dip recession that is going to hit the U.S. within two years. Do you believe that the U.S. will go through a double-dip recession since a recovery will have to take place for a dip to take place? Why or why not?

  2. I explained my view in an earlier post -
    For the economy to heal, there needs to be the destruction of unproductive debt. The stimulus and various band aids by the US government do the opposite by transferring private bad debt to the public purse and delay the whole process. This is why I believe we will see multiple peaks and valleys (hence WWW). Currently we seem to be at a peak and will soon plunge into another valley where there will undoubtedly be another "stimulus" package that will temporarily lift the economy before it plunges yet again.


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