Doha Bank to cut construction exposure
Speaking from his office in loan growth in Qatar in general next “It is a deliberate attempt to bring financing options for the coming Doha, Seetharaman told Reuters year should be around 3 percent. down our contract exposure beyear that include bonds, bilateral Doha Bank will cut its exposure to that assets in the UAE had been Seetharaman forecast loan cause in the region itself there’s a lot loans, and syndicated loans, but construction companies to 10 percut to around 2 billion dirhams growth for Doha Bank even though of systemic risk,” Seetharaman said. declined to provide the total cent from 17 percent of lending in ($544.5 million) from 5 billion dirit plans to scale back exposure to Doha Bank has a $400 million amount of expected financing for the next three years, its CEO said on hams before the start of the boycott building contractors tors over the next loan due in January. When next year.
Tuesday, part of efforts to adjust to a in June 2017. three years, with h an aim of reasked about abou refinancing Bankers have said that they exbuilding industry downturn followDoha Bank has a branch in Dubai ducing it to 10 percent ercent from 17 plans he said: sai “We have alpect the tiny but wealthy country’s ing a slump in oil prices. and Abu Dhabi and it is reducpercent currently. y. ready made arrangements. banking sector to see further con
CEO Raghavan Seetharaman, ing exposure to the UAE through Contractors have ave been hit The money is coming in solidation after the merger of Barwa right, also said that the bank, Qatar’s asset swaps, sources told Reuters about 50 job cuts last year from a hard by the slump mp in the second se week of Bank and the International Bank of fifth largest by assets, would mainpreviously. total of about 92. the Gulf ’s construcrucJanuary,” Jan he said, Qatar earlier this year. tain its presence in the UAE despite This represents part of moves by “If there’s a defusion of the crisis tion market as govovwithout wit providing Qatar has 17 local and internaa protracted regional rift. some Qatari companies to trim extomorrow we want to keep that opernments had to o further fur detail. tional commercial banks serving a The UAE, Saudi Arabia, Bahrain posure to the Gulf ’s main financial tion open,” Seetharaman said. cut back on proj- Seetharaman S population of only 2.6 million. sab and Egypt began a boycott of Qatar and wealth center since the rift. The bank’s loan growth for 2019 is ect spending said that the Seetharaman said that there were in June 2017, accusing the counSeetharaman said the bank would expected to jump to 6 percent after following the bank is explorno current talks for a merger involvtry of supporting militants, which maintain its UAE presence despite being flat or only marginally up this 2014/2015 fall in ing a number ing Doha Bank, though it remains a Qatar has denied. the scaling back, which included year, the CEO said. He said overall oil prices. of different future possibility.