UK banks 'have $5bn exposure to Dubai World'
London, December 3, 2009
UK banks have a $5 billion total exposure to Dubai World, making them the biggest foreign creditor group at the troubled Dubai state-owned conglomerate, a report said.
Royal Bank of Scotland was the most exposed with a figure of $1 billion-$2 billion, said the Financial Times report, citing bankers and their advisers. Other UK banks, HSBC, Standard Chartered and Lloyds, were said to be exposed by around $1 billion each.
Much of the UK bank's lending is understood to be focused on the still-functioning parts of Dubai World such as DP World and Jebel Ali Free Zone.
On Monday, Dubai World unveiled a $26 billion restructuring plan.
The FT said that as a result of this plan, RBS's exposure has been reduced to an estimated $700 million - a level much lower than had been feared.
Reuters reported on Wednesday that Dubai World's creditors had formed a committee comprising six banks -- including the four UK banks -- which is due to meet next week.
The banks were not immediately available for comment. – Reuters