SINGAPORE, 30 November 2009 - DBS said today its total exposure to the city-state of Dubai is approx SGD1.8 billion (USD1.28 billion). The bank believes that the situation is manageable as a substantial portion of this is to Dubai owned companies operating in Asia that are sound, such as Labroy and South Beach, which is collateralised.

As of today, the only credit that is captured under the standstill notice is a SGD558 million (USD400 million) bilateral loan to Dubai World Finance which represents 0.2% of DBS’ total balance sheet. The bank has no exposure to Nakheel.

DBS' exposure to the entire Middle East region accounts for around 2% of its balance sheet.

Presuming the standstill loan of SGD 558 Mil can only recover 50%

Bad debt Provision= 279 Mil

Total Shares= 2.282 Bil

Current Share Price= SGD 15.00

The share price effect= 279000000/2282000000

= -.12 SGD

Adjusted Price = 14.88 SGD

Calculation      ( Date: 02-Dec-2009 02:29) Posted: Dubai City may not collapse, but Dubai World will have big troubles over the next several years.  It is loaded with huge debts and its expensive white elephants are not likely to generate sufficient revenue to finance operations.  Foreigners are leaving and tourists are not expected to arrive anytime soon.  Any buyer willing to take over the white elephants is going to squeeze Dubai World hard.  Yes, all Arabs are brothers; but can an ounce of gold be traded for an ounce of copper?  I would be very surprised if Dubai's neighbourhood kings are not laughing in the privacy of their palaces. senecus      ( Date: 01-Dec-2009 23:03) Posted: There is no reason to get so hype up on this announcement......if Dubai is going to default on the payment...the whole country is going to collapse...will Dubai collapse?...Lehman Brothers is a PLC...they run their own business and not connected to the US states affair...Lehman Brothers is not able to sell bonds with US attached...but Dubai World is running on behalf of Dubai and very well connected to the states affair......see the difference......well, the Dubai officials can say whatever crap they want...but one thing is certain...Dubai have to pay up...this concern the future of Dubai......if Dubai World can default on payment...and run away with it...other countries can follow suit as well...example like Ministry of Trade...using their countries name to lure investors to pump in money and then default the payment...if all countries do this, the whole world will be in chaos. Back to the main topic...will Dubai collapse?