Thursday, September 29, 2011

Qatar sovereign wealth fund: Europe in biggest crisis in 50 years

FRANKFURT: The head of Qatar's $100 billion sovereign wealth fund said Greece's debt crisis was Europe's worst in decades, telling a German newspaper Handelsblatt the outlook precluded making long-term investment decisions.

"Currently, we can only act with a view to the short term, longer term forecasts cannot be maintained in view of the insecure situation in Europe and the United States," Qatar Holding chief executive Ahmad Mohamed Al-Sayed was quoted as saying in an interview.

"This situation dwarfs everything that the continent has seen in the past 50 years ... "It remains to be seen whether all the various states truly decide in favour of a common future."

Germany's parliament was set to vote on Thursday on an increase of the euro zone's bailout fund EFSF. The vote could reveal whether Chancellor Angela Merkel has enough support within her shaky coalition to pass the legislation without resorting to help from the opposition.

The CEO of Qatar Holdings, which has been an active investor in the banking sector, said European lenders had, by and large, managed to strengthen their capital base.

Speaking specifically about Qatar Holding's stakes in German carmaker's Porsche SE and Volkswagen, Al-Sayed said the recent merger setback was not alarming.

"In our view, management has long since integrated the two companies, so this (setback) is just a legal issue," he said.

"What is important is that the management of both companies are completely in agreement, and I do not have the slightest doubt there. Volkswagen and Porsche see themselves as one group irrespective of the legal situation."

When asked about speculation Qatar could take a stake in European aerospace and defence group EADS , he said: "We are open for opportunities in Europe and in Germany. Were there such a possibility, we would seriously consider it."

German carmaker Daimler is looking to exit its 15 percent holding in EADS.

Source: http://economictimes.indiatimes.com

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