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...much of Dubai has been built on short-term loans, based on the idea that income from the projects would buoy liquidity and help roll forward debt payments. For example, Dubai's driverless metro system, one of the most advanced in the world, is financed through three-year notes, which the city-state believed they could renew as ticket fees helped pay the interest. Now, the international consortium that is building the system - including the Japanese construction giants Mitsubishi and Obayashi as well as the Turkish company Yapi Merkezi - are probably left with huge fees unpaid...

Author: /time Magazine | Title: Can the Banks Force Dubai into Foreclosure? | 12/1/2009 | See Source »

...some observers believer there could be a substantial amount of off-balance-sheet debt as well). About 40% of the official debt is held by British banks, 30% by E.U. firms, about 9% by U.S. institutions and 7% by Japanese ones. According to a source close to Dubai World, the city-state's representatives now wants to write off some $30 billion of its debt...

Author: /time Magazine | Title: Can the Banks Force Dubai into Foreclosure? | 12/1/2009 | See Source »

...banks, not surprisingly given their current condition, have resisted, and are now in negotiations in with Dubai World. The banks may have limited options. It does little good to go after Dubai's overseas holdings because those have largely been into the troubled real estate market as well. Those holdings and joint ventures involve the Essex House hotel in New York City, the W Hotel group, MGM Mirage in Las Vegas as well as smaller interests in such properties as Raimon island in Thailand...

Author: /time Magazine | Title: Can the Banks Force Dubai into Foreclosure? | 12/1/2009 | See Source »

Much of the world was shocked and titillated by news of alleged fat-stealing murderers in the Peruvian jungle. But the story may have a much more sinister underbelly. Could the allegation of homicidal liposuction possibly be a smokescreen to distract attention from other crimes, including, some local journalists say, the existence of a death squad that may be operating within the country's national police...

Author: /time Magazine | Title: Peru's Fat-Stealing Gang: Crime or Cover-Up? | 12/1/2009 | See Source »

...zone, with cocaine passing through on the way to the Peruvian coast and then to Europe or the U.S. by boat. (The price supposedly paid for a gallon of fat would fetch about six times what the equivalent amount in cocaine would on the local market.) Peru is the world's second largest cocaine producer after Colombia, with a capacity to produce around 300 metric tons of cocaine annually from its coca crops...

Author: /time Magazine | Title: Peru's Fat-Stealing Gang: Crime or Cover-Up? | 12/1/2009 | See Source »

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