Senior Director for financial services at S&P Global Ratings, Mohamed Damak, said on Tuesday that the Qatari government and state-controlled companies have injected nearly $43 billion to help banks after the country’s boycott in June last year.
According to Damak, about $22 billion worth of deposits flowed out of the country since the boycott.
A Bloomberg article quoted Damak as to saying that this injection will allow blanks to increase their lending and financing of government projects.
Damak continued to say that since the start of the GCC rift, banks and investing institutions in neighboring countries to Doha retrieved their deposits. Foreign investors outside of the region also pulled out.
The senior director believes that outflows from neighboring countries involved in the rift will persist.
- Qatar banks seek Asian, European funding as diplomatic crisis bites
- Fund outflow pushes Qatar bank to offer new certificates of deposit
- Sanctions cut Qatar central bank’s foreign reserves by $10.4 bln in June
- Foreign deposits in Qatar’s banks fell the most in two years
- Qatar central bank raises deposit rate 25 bps, keeps others unchanged