MIDEAST DEBT-UAE banks “more aggressive” about selling Qatar loans as Gulf rift drags on

In recent weeks, banking sources say, it has become clear to many UAE bankers that Qatar’s isolation could potentially last for years.In recent weeks, banking sources say, it has become clear to many UAE bankers that Qatar’s isolation could potentially last for years.

At the time, UAE banks pulled back from new business with Qatari institutions but largely hung on to existing syndicated loans which they had extended to Qatari banks. Some UAE banks did discuss the possibility of selling off their exposure, but very little of any actual business was done and prospective sellers were reluctant to lower the prices of the loans significantly, the sources said.

Qatari banks have traditionally relied heavily on external financing and raised over $10 billion through syndicated loans since early 2014, Thomson Reuters data shows. A large proportion of that total was lent by banks in the UAE, the region’s financial centre.

Source Credit: Reuters
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