S Korea: Dubai Debt Risk Impact On Local Market Limited
SEOUL -(Dow Jones)- The impact of Dubai debt risks on domestic financial
markets will be limited, but the government will monitor the situation on a
daily basis to take action if needed, South Korea's finance ministry said
Monday.
"Korea's borrowing from European banks may be affected by the Dubai incident,
but any negative impact will be limited, given Korea's foreign exchange reserves
and favorable dollar conditions in the local market," it said in a statement
after a meeting of related ministries.
The Dubai debt news may hurt the global financial markets temporarily, but
won't likely develop into another global crisis, it said.
South Korean builders will likely continue to benefit from growing
construction projects in the Middle East despite the Dubai incident, the
ministry said.
Dubai World, the city-state's largest corporate entity, last week asked
creditors for a six-month standstill on debt repayments. The announcement has
sent shock waves through the global markets.
-By In-Soo Nam, Dow Jones Newswires; 822-2198-2234; In-Soo.Nam@dowjones.com
(END) Dow Jones Newswires
11-29-092020ET
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