Qatar’s debt rose sharply in June

- Advertisement -

The cost of securing Qatar’s sovereign debt rose sharply during June after some Arab and Gulf countries broke their diplomatic ties with Doha, according to experts from data research firm IHS Markit.

Qatar’s five-year credit default swaps stood at 112.94 basis points (bps) on Monday, after it rose 4 bps from Friday’s close to 115 bps, according to IHS Markit, which is based in Britain. This is the highest level recorded since June 2016. Economist Francisco Tang Postilos attributed the increase as a direct result of the diplomatic crisis between Qatar and its Arab and Gulf neighbours.

The expert said: “We are still waiting for the July 1 economic report which illustrates the real impact on inflation rates and trade in Qatar. I expect an increase in inflation rates and a drop in surplus due to the rising import costs.”



- Advertisement -