(3 December 2009 – Asia) The Monetary Authority of Singapore (MAS) has said that the Dubai debt crisis should not affect the financial stability of Singapore’s banking industry.Financial markets around the world have gone into a frenzy after the government of Dubai requested a six-month moratorium on debt repayments of its investment vehicle, Dubai World.
The government department said that Singapore’s banking sector’s total gross exposure to UAE, of which Dubai is one of seven emirates, is well below 1 percent of total banking assets.
The MAS do not expect developments in Dubai to adversely affect Singapore’s financial stability, they said in a statement.
MAS has and will be closely monitoring developments of Dubai World and the United Arab Emirates (UAE) and its impact on Singapore’s financial sector, the board added.