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22 May 2017 21:13 (South Africa)

Dubai contagion spreads to Greece

Greece is worried that it’s following Dubai into a sinkhole, after ratings agency, Standard & Poor's, put the country on negative credit watch for its debt of more than 110% of GDP. The nation’s deteriorating public finances have raised concern in the EU, with Jean-Claude Trichet, the boss of the European Central Bank, saying Greece needs to take stern measures to halt the slide. Greece's problems have been fuelled by Dubai's default on some $60 billion of debt owed by its Dubai World development arm, which built many of the huge and half-finished skyscrapers dotting the desert skyline. Now, fears about the vulnerability of Greek government bonds have raised the country’s cost of financing in jittery global markets. Read more:  BBC news

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