Dubai Worlds Australian exposure
(1 December 2009 – Australia) The government of Dubai surprised markets on Thursday by requesting a six-month moratorium on debt repayments of its investment vehicle, Dubai World, and has sent a wave of questions aimed at Australian banks about possible exposures.
Concerns that the Dubai government may default as a result of the debt laden key holding company have seen investors seeking assurance that no negative result will be visible in Australia’s banks.
An ANZ spokesperson said on Friday that the bank has no material exposure to Dubai World.
ANZ works with a number of well-established relationships throughout the Middle East but does not believe there will be any material adverse impacts to these relationships as a result of the moratorium announced by Dubai World, the ANZ spokesman said on Friday.
The Bank of Queensland also confirmed that it has no connections to the stressed investment vehicle.
David Liddy, chief executive officer, BoQ, said that the bank has no direct exposure to Dubai World and stated that in fact all of the bank’s exposures were in Australia and 70 percent located alone were in Queensland.
However, Westpac Banking Corporation has confirmed in a statement on Friday that it does have some exposure to Dubai World, but no material loss is expected as a result of its relationships.
Australia’s largest investment bank Macquarie bank also released a statement advising investors of its position in relation to the company.
Fiona Tyndall, Macquarie Group, said that it has negligible exposure to Dubai World and to other Dubai-based organisations.
The concerns that the Dubai government may default sent European equity markets plummeting over three percent on Thursday, which spilled over into the local market on Friday morning.
An ANZ spokesperson said on Friday that the bank has no material exposure to Dubai World.
ANZ works with a number of well-established relationships throughout the Middle East but does not believe there will be any material adverse impacts to these relationships as a result of the moratorium announced by Dubai World, the ANZ spokesman said on Friday.
The Bank of Queensland also confirmed that it has no connections to the stressed investment vehicle.
David Liddy, chief executive officer, BoQ, said that the bank has no direct exposure to Dubai World and stated that in fact all of the bank’s exposures were in Australia and 70 percent located alone were in Queensland.
However, Westpac Banking Corporation has confirmed in a statement on Friday that it does have some exposure to Dubai World, but no material loss is expected as a result of its relationships.
Australia’s largest investment bank Macquarie bank also released a statement advising investors of its position in relation to the company.
Fiona Tyndall, Macquarie Group, said that it has negligible exposure to Dubai World and to other Dubai-based organisations.
The concerns that the Dubai government may default sent European equity markets plummeting over three percent on Thursday, which spilled over into the local market on Friday morning.
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