Tuesday, January 13, 2009

Daily news - 13 Jan

DBS denies exposure to Kuwait firm
DBS Group said yesterday it has no exposure to a troubled Middle Eastern bank, contrary to media reports and market speculation that dragged its shares down as much as 3.9 per cent during the day. The counter was hit amid speculation that DBS could be exposed to Kuwait's Global Investment House, which has defaulted on most of its debt. Denying any such exposure, DBS also said in a statement issued after the market closed yesterday that it has 'maintained the strength of its balance sheet through careful management of credit, market and operational risks, and continues to vigilantly monitor credit trends in its loan portfolio'. DBS shares finished the day 3.7 per cent lower at $8.11. Global Investment, Kuwait's largest investment bank, said on Thursday last week that it has defaulted on most its loan repayments because the gridlock in global credit markets has hampered the refinancing of short-term debt. Global said that it is 'in default on the majority of its financial indebtedness' after a capital-repayment default on a syndicated facility in the second half of December 2008 and because of a 'cross-default provision'. It also said it is 'committed' to completing debt restructuring 'as soon as is practicable.'

Source: Kim Eng

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