AF­TER BLOCK­ADE, QATAR IN­JECTED $43 BIL­LION TO HELP BANKS

Fol­low­ing a 22 bil­lion of de­posits flow­ing out of the coun­try since the block­ade, Qatar in­vested about $43 bil­lion in banks, said S&P Global Rat­ings.

Qatar Today - - BUSINESS > BANK NOTES -

The govern­ment and state-con­trolled com­pa­nies in­jected the cash into the fi­nan­cial sys­tem, ac­cord­ing to Mo­hamed Da­mak, S&P's se­nior di­rec­tor for fi­nan­cial ser­vices.

“The govern­ment in­ter­vened quite strongly to help banks and al­low them to in­crease lend­ing and fi­nance govern­ment projects,” said Da­mak. “Banks and in­sti­tu­tions from neigh­bour­ing coun­tries that are part of the boy­cott pulled most of the de­posits, while ner­vous in­vestors out­side of the re­gion also with­drew funds.”

Da­mak fur­ther said that out­flows from the Gulf coun­tries in­volved in the stand­off are ex­pected this year as well. How­ever, he added that the banks would be able to with­stand the withdrawals be­cause they hold 20% - 40% of their as­sets in liq­uid se­cu­ri­ties.

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