The news that Dubai World has asked creditors for a six-month standstill on debt repayments continues to weigh on the banking sector, with banking shares continuing to pull back.
The following is the loan exposure of the top 10 foreign banks to the United Arab Emirates at the end of fiscal 2008.
The following banks have either reported that they have little or no exposure to Dubai World or people close to the banks have said so. Dubai World accounts for about $60 billion of Dubai’s $80 billion in liabilities, of which half is held by European banks.
[From The WSJ]
- Banco Santander SA (STD), a person familiar said.
- Barclays PLC (BCS).
- Credit Agricole SA’s (ACA.FR) Calyon investment bank.
- Credit Suisse Group (CS).
- Deutsche Bank AG (DB), a person familiar said.
- ING Groep NV (ING).
- Marfin Popular Bank PCL (CPB.CP).
- Societe Generale SA (GLE.FR).
- UniCredit SpA (UCG.MI).
The following banks made more detailed comment:
- Dexia SA (DEXB.BT) said it has limited exposure to Dubai through Dubai Port bonds. The bonds are linked to DP World Ltd. (DPW.DIF), a unit of Dubai World. DP World isn’t currently included the debt restructuring announced by Dubai World.
- KBC Bank NV (KBC.BT) said: “We have a rather limited participation in a $5 million syndicated credit to Dubai World.”
- Natixis SA (KN.FR) has exposure of $50 million to Dubai World and no exposure to the Dubai real-estate market.
- UBS AG (UBS) said its exposure in Dubai is small and not material.
The Emirates Banks Association said the top eight foreign banks in the UAE by lending volume–HSBC, Standard Chartered, Barclays, RBS’s ABN Amro, Citigroup Inc. (C), BNP Paribas SA (BNP.FR), Lloyds and Calyon–extended about $3 billion in loans last year throughout the federation, without breaking down the loans by emirate or type of borrower.