Dubai's debt problems clouded national day celebrations in the United Arab Emirates on Wednesday -- at least for a shaken financial community trying to work out whether any of their loans enjoy government protection, Reuters reported. Flags, fairy lights and fanfare marked the UAE's 38th anniversary at a moment when Dubai's request for a payment delay on $26 billion of debt owed by government-owned Dubai World has exposed the frailties of "quasi-sovereign" lending.

Dubai World broke six days of market-roiling silence early Tuesday morning, saying it was negotiating to restructure $26 billion in debt and anticipated a deal quickly, The Wall Street Journal reported. The announcement, just after midnight local time, came after Dubai government officials said the emirate wasn't obligated to step in and support the state-owned conglomerate. Stock markets across the United Arab Emirates tumbled in the first trading day since the government announced last week that it would ask for a six-month standstill on debt payments for Dubai World.

Chinese banks must beware of the risk of credit card defaults because overdue payments are rising sharply, the People's Bank of China said on Monday. Credit card payments that were more than six months late jumped 126.5 percent in the first three quarters from the same period last year, to 7.4 billion yuan ($1.08 billion), the central bank said on its website, www.pbc.gov.cn. 'The risk of bad debts on credit cards deserves constant attention,' the central bank said.

Mark Hotchin and Eric Watson's Hanover Group is headed for receivership if Allied Farmers' proposed debt for equity swap cannot be completed, the Grant Samuel report on the transaction found, The New Zealand Herald reported. However both Grant Samuel and Guinness Peat Group's Tony Gibbs, who yesterday confirmed his company had decided against tabling an alternative offer, raised questions about the deal's merit for Allied Farmers and its shareholders.

Japan passed into law Monday a conditional moratorium on loan repayments by small businesses and home owners, a move that opponents say may lead to an increase in bad loans on the books of the country's banks, The Wall Street Journal reported. The bill, which has been in the works since the Democratic Party of Japan came to power in September, was passed by the upper house of Japan's parliament on Monday, according to a spokesman at the Japanese banking regulator the Financial Services Agency.

The United Arab Emirates central bank on Sunday said that it stood behind domestic and foreign banks operating in Dubai after last week’s announcement that Dubai World needed more time to pay back some of its $60 billion in debt, The New York Times reported. Dubai surprised the financial world on Wednesday when it said it would ask creditors of Dubai World, the conglomerate behind its rapid expansion, to agree to a six-month standstill on the debt. Global markets sank on the news.

Beijing Automotive Industry Holding Co. was thwarted again this week in its effort to gain access to advanced foreign technology after a deal involving General Motors Co.'s Saab unit fell through, The Wall Street Journal reported. But analysts expect the Chinese auto maker to try again as it seeks a platform for extending its reach world-wide. Beijing Auto said Wednesday it regrets the collapse of the deal.

The cost of taking a stake in embattled Japan Airlines Corp might weaken the credit strength of AMR Corp, but the parent company of American Airlines would have more to lose if it allowed JAL to slip into an alliance with other carriers, Reuters reported. At stake is a share of JAL's lucrative Asian routes. Delta Air Lines and its SkyTeam partners have offered more than $1 billion to persuade JAL to defect from the rival Oneworld alliance.

Kangaroo Island Abalone has received a State Government grant of $270,000 to upgrade electricity infrastructure at its east farm, The KI Islander reported. The farm has been run solely on diesel generated power since 2005 and general manager Justin Harman said the new infrastructure could halve the company’s annual diesel fuel bill for that farm. The company spends about $250,000 a year on diesel. The innovative new system will connect the farm to the main electricity grid but have the capacity to disconnect it when the load reaches network limit on Kangaroo Island.

Newfoundland and Labrador Refining Corp., the Canadian company planning to build a C$4 billion ($3.8 billion) oil refinery on the country’s east coast, won a judge’s approval to exit bankruptcy and find a buyer or a partner for the project within two years, Bloomberg reported. Newfoundland Supreme Court Judge Robert Hall dismissed objections from BAE Newplan Group Ltd., a unit of SNC-Lavalin Group Inc., and Japan Steel Works Ltd., Kobe Steel Works Ltd. and IPS Services Inc., who had sought to have the Canadian company declared bankrupt.