Sep 8, 2008, 11:23 GMT
Amman - The financial problems facing the US real estate mortgage giants Fannie Mae and Freddie Mac are not expected to have a 'direct' impact on Arab markets, financial analysts said Monday.
'I don't think the difficulties suffered by the two US firms could have a direct impact on the Jordanian and other stock markets,' Nizar Taher, head of brokerage at the Jordan Ahli Bank, told Deutsche Presse-Agentur dpa.
'Regional bourses have already been on the retreat because of domestic factors and the decline has nothing to do with the Freddie and Fannie affair,' he said.
The US government took control of Fannie Mae and Freddie Mac Sunday, seeking to deflect the rising threat of surging mortgage defaults that were poised to topple the two companies that manage about half of the US home loan market.
One financial analyst said that he did not exclude the possibility of Middle East markets showing 'indirect reaction to the issue in the medium term.'
'Accordingly, the step taken by the US government to seize control of the two firms to prevent their collapse will have a positive effect on global markets and with a time lag on Arab markets,' said Wajdi Makhamreh, Chief Operating Officer at the Sanabel International Holding.
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