Dubai Stock Exchange Plummets 7%, As Government Confirms It Won't Pick Up The Tab

Dubai Tower

Dubai World, the umbrella company with $59 billion in looming debt, confirms its debt will not be backed by the government. 

Bloombrg: Dubai World’s debt is not guaranteed by the government, Abdulrahman Al Saleh, director general of the emirate’s Department of Finance, said in an interview with state-run Dubai TV today.

“The company received financing based on its project schedule, not a government guarantee,” al-Saleh said in response to whether the government was backing the debt. “The lenders should be part of the responsibility.”

To add insult to injury, the Dubai Stock Exchange is plummeting, down more than 7%.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.