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Standard Bank checks Dubai risk

Nov 27 2009 18:05

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Johannesburg - Africa's biggest bank by assets, Standard Bank Group, does not have direct exposure to Dubai World but will monitor credit risk in firms linked to the troubled conglomerate to which it is exposed.

Dubai has asked to delay payment on billions of dollars of debt issued by Dubai World and its property subsidiary Nakheel, sparking fears the emirate could default and even derail a world economic recovery.

South Africa's Standard Bank said on Friday there had been no indication of change in the credit performance of the companies it was exposed to. Banks outside the Gulf also played down their exposure to the debt crisis.

"We have no direct exposure to Dubai World but we do have exposures to companies where Dubai World is a key shareholder," Standard Bank said in a statement.

"These companies are separate operating companies and the exposures are generally collateralised and/or secured," the statement said.

- Reuters

 
 
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