Friday, December 18, 2009

How did the market take this?

Headline from Reuters:
CORRECTED-(OFFICIAL)-UPDATE 1-Dubai seeks govt dept surpluses
Thu Dec 17, 2009 11:55am EST

(Corrects after Dubai government clarifies earlier statement which it says was meant to refer to government departments only, not to state-related entities)
This is what happens when you rush to, um, build investor confidence.

More from Reuters:
Dubai's ruler on Thursday issued a law ordering government departments to transfer their surplus revenues to the emirate's treasury, and to improve transparency and control of public spending.
The new law allows profits and revenue surpluses to be reinvested, with the approval of the Supreme Fiscal Committee, in consultation with Investment Corporation of Dubai, which oversees the emirate's investment portfolio.
The new law announced on Thursday also aims to regulate government departments' public spending "and control government revenues (and) provide an accurate database for revenues and expenditures." Top Dubai officials -- the heads of the Supreme Fiscal Committee and ICD -- were due in New York on Thursday in an effort to rebuild confidence in the Gulf emirate's finances after a stop in London the day before.
In other words, the budgets of the government and the government-owned businesses are being unified?


Blogger Diogenes@Sinope said...

Yes, we're going for command and control it seems. I work for one of those entities, and my suspicion is that there is a cash flow problem in aggregate.

8:03 PM  

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