Scott McCulloch: November 2009 Archives

News the government of Dubai was seeking a standstill on the debt repayments of its investment vehicle, Dubai World, is currently reverberating through the world's financial markets.

Dubai World has interests in all manner of industries globally and has a number of UK investments in property, leisure and ports, among others.

However it is being weighed down by its property arm Nakheel, which counts the iconic Palm Islands development in the Gulf among its assets.

Ripples from this reach all the way to Scotland as Leisurecorp - a division of Nakheel - bought Turnberry, host of the 2009 Open Golf Championship, for £55m last year.

The revelation of 'secret' loans totaling £62bn to Royal Bank of Scotland and Halifax Bank of Scotland last year is startling.

Equally eye opening was the answer City minister Lord Myners gave when asked what other banks had received covert loans.

In a rather convoluted way he told Channel 4 News: "The very definition of covert is that is not a question I am going to answer."

What is important to differentiate here is the fact these were not loans made in the traditional sense, but rather the Bank of England (BoE) stepping into the role of lender of last resort after the money markets closed up following the collapse of Lehman Brothers.