Feb 18 2009
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Aramco, Dow plan to drop troubled RBS
Wednesday, Feb 18, 2009
Riyadh: Saudi Aramco and the Dow Chemical Company of the US are seriously considering dropping the cash-strapped Royal Bank of Scotland (RBS) as project financing manager of their joint venture industrial facility in Ras Tanura in eastern Saudi Arabia, according to well-informed sources.
This was after reports appeared showing that the bank is facing acute cash-crunch as an aftermath of the global financial crisis. Saudi Aramco and Dow joined hands in establishing the construction, ownership and operation of a world-scale chemicals and plastics production complex, named the Ras Tanura Integrated Project.
The two companies later appointed a consortium led by RBS to arrange loans worth $22 billion (Dh80.80 billion) to finance the project.
RBS, Britain's biggest government-controlled bank, announced that it posted a record loss of $30 billion during the last year, thus becoming one of the biggest losers in the banking history of the United Kingdom. This was mainly attributed to the bank's more write-downs on assets affected by the credit crunch.
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