Qatari government injects $43 billion to help banks amid Arab boycott

According to Damak, about $22 billion worth of deposits flowed out of the country since the boycott. (Shutterstock)

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.

READ ALSO: Pressure on Qatari banks following outflows of non-domestic deposits

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.
 

SHOW MORE
Last Update: 09:04 KSA 12:04 - GMT 09:04
Top