Financial Crisis in Dubai

mymoen    Business, sundry     business, Financial

Economic Observer, Edwin Sinaga said the financial crisis in Dubai do not have to worry about, because the impact of the crisis far is relatively small compared to the global financial crisis that began from the United States and Europe. The financial crisis should not be exaggerated (blow up) in an effort to make money, so market participants are asked to be more rational, and not panic, he said in Jakarta on Tuesday. Edwin Sinaga is also Managing Director of Nusa Corpindo Finan said, banks in Indonesia is estimated to not have a portfolio with banks in Dubai.

So there is no problem with economic growth in the country.

“We are optimistic that even the Indonesian economic growth in 2010 will continue to grow higher than this year,” he said. Eventhough so, he added, in Dubai’s financial crisis is expected to trigger an increase in yield / yield of the sukuk in all countries, including Indonesia. “There is no escape capital from here (Indonesia). It’s just that may be affected in yield, “he said.

Edwin explained, there would be no capital flight, especially that grown in the state because, based sukuk Act, has guaranteed payment. “So what will be done by foreign investors in the Middle East, they will choose our sukuk,” said .Ia, which will occurs precisely capital flight from the Middle East region into other regions, including Indonesia.

“Not only the countries emerging markets, but also other countries precisely because they avoid the current debt instruments of Dubai,” Dubai World consortium. In the last time before had defaulted on its debts, so ask for suspension of debt payments (standstill) to six months to foreign creditors .

Consortium Dubai World in Dubai’s development manager asked the creditors to be patient receive payment until May 2010. Debt principal to be borne Dubai World for 60 billion U.S. dollars. When including interest, then the burden to be borne by the company group that government support to around 80 billion U.S. dollars.

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