Dutch government guarantees Dubai deals
Friday 27 November 2009
The Dutch government could lose hundreds of millions of euros because of the financial crisis in Dubai, the Financieele Dagblad reports on Friday.
The government has given export credit guarantees to a number of companies operating in the Gulf state, which has been hit by debt problems.
The guarantees are made via credit insurer Atradius but the government covers the risk. In total, Atradius has given credit insurance totalling €778m to the United Arab Emirates, of which Dubai is a part, the NRC said.
A finance ministry spokesman told the paper that a repayment scheme has already been worked out for three-quarters of the non-payments after it emerged state-owned holding company Dubai World was in trouble this summer. 'Until now, Dubai has fulfilled its obligations,' the spokesman said.
Among the Dutch contractors working in Dubai is Rotterdam dredging firm Van Oord which has been creating artificial islands for the Palm Deira project among others. Van Oord's contract comes from Nakheel, the Dubai state-owned development company which filed for a six-month suspension of payments totalling $4bn.
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Wednesday: An overcast and misty start but sunny spells later. Max 7º on coast, 13º inland
Surely the relevant point is that the Dutch people stand to lose in Dubai? The government has no money of its own... Will the politicians and officials concerned be held responsible and prevented from participating in future gambles? The failure was not hard to forecast...
By Graham Lea | November 28, 2009 10:11 PM