Mon, November 30, 2009
Business > Markets > Dubai debt crisis

China's three leading banks: No holding of Dubai World bonds

2009-11-27 13:20:47 GMT2009-11-27 21:20:47 (Beijing Time)  Xinhua English

Rising high among the towers in Business Bay, Burj Dubai, the world tallest tower, which is still under construction, is scheduled to be open in January 2010 in Dubai, United Arab Emirates, Thursday, Nov. 26, 2009.(AP)

BEIJING, Nov. 27 (Xinhua) -- China's three leading banks Friday told Xinhua they do not hold the troubled Dubai World bonds.

Industrial and Commercial Bank of China, the country's biggest listed lender, said it has no exposure to bonds issued by Dubai World.

Bank of China, the country's third-largest, does not hold bonds issued by Dubai World, the Dubai government or any Dubai sovereign funds and related institutions, said Zhao Rong, a spokeswoman for Bank of China.

The overseas branches of Bank of China do not have direct credit business relationship with Dubai World, Zhao said.

Bank of China will continue to investigate any potential impact on the bank's other businesses and closely monitor related risks, she said.

Bank of Communications, the country's fifth-largest, told Xinhua it does not have exposure to Dubai World credit and bonds.

China Construction Bank Corp., the country's second-largest bank, told Xinhua their investigation is underway.

Dubai said on Wednesday it was asking for a six-month reprieve on paying Dubai World's debts as a first step to restructuring the company.

Dubai World, the emirate's leading state-owned company, said it would ask creditors to agree to a standstill on 60 billion U.S. dollars of debt until at least May.

Market observers said if Dubai should prove unable to pay the debts, many of the world's leading banks will suffer losses.

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