Mubasher: Qatar has injected around $43 billion in 2017 as an action to support Qatari banks after a Saudi-led boycott resulted in a sharp drop in deposits, S&P Global Ratings said in a report released Tuesday.
Qatari government-controlled companies pumped cash into the financial system after around $22 billion of deposits flowed out of the country in the period between June and December on the back of Qatar’s diplomatic dispute, which began in June, Mohamed Damak, S&P’s senior director for financial services, said.
Another reason for the cash-boost was that Qatar had planned to spend about $200 billion in order to host World Cup 2022, the data showed.
Qatar, the world’s biggest exporter of liquefied natural gas (LNG), relies mainly on foreign deposits to support its banking system, especially after the drop in oil prices as well as the decision by the Organization of Petroleum Exporting Countries (OPEC) to reduce output, which should help boost oil prices, according to Bloomberg.
Damak added that the Qatari government's assistance to banks has allowed them to increase lending and financing of government projects.
