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Abu Dhabi’s Achilles’ heel

27 April 2016 By Una Galani

The emirate blinked in a standoff over $3.5 bln of debt it guaranteed for the disgraced Malaysian investor, and is now paying interest on 1MDB bonds. The fund’s default is a headache for Malaysia. But Abu Dhabi’s reluctance to let down outside investors means it might pay more.

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