World economies assess fallout of Dubai debt crisis

World economies and global financial players have started assessing the fallout of Dubai's debt crisis even as the government there today pledged full support to its troubled conglomerate Dubai World.

While global agencies, including Standard and Poors, have downgraded the ratings of banks and financial institutions in Dubai, the government said it would work towards the success of the crisis-hit company, which had requested for deferment of debt of $59 billion triggering a global stock market crisis.

As the broad contours of the financial pressures being faced by Dubai became clear, global markets started correcting themselves but the central banks world over, including India, initiated impact assessments.

The governments and financial authorities expressed cautious optimism, saying the crisis would blow over as it was much less in magnitude compared to the global financial meltdown.

"We have seen the press reports. We will have to study what the issue is, what the problem is and what will be the possible implications if any for the Indian economy, in the people, in the corporate. It will take some time for us to examine this," India's finance secretary Ashok Chawla told reporters in Delhi.