First Published: 2017-10-17

Fitch Ratings says threat to Qatar liquidity fading
Threat to Qatari banks’ funding, liquidity posed by withdrawals of foreign deposits since Saudi-led boycott began in June appear to be fading according to Fitch.
Middle East Online

Fitch warned however that "as long as the boycott continues, risks to funding remain"

DUBAI - The threat to Qatari banks' funding and liquidity, triggered by withdrawals of foreign deposits amid a Saudi-led boycott of Doha, appears to be fading, Fitch Ratings said on Tuesday.

Qatari banks' overall funding increased slightly in August, according to a report released by Fitch, the first upward movement since the boycott began in June, sparked by accusations of Doha's ties to radical groups.

Funding by the Qatar Central Bank, which rose sharply in June, slowed in August, suggesting that banks no longer needed the support, the London-based agency said.

The cash outflow has been replaced largely by Qatari public-sector deposits, inflows from international asset managers, debt and issuance of Islamic sukuk bonds to international investors, Fitch said.

Fitch warned however that "as long as the boycott continues, risks to funding remain, and higher funding costs are weighing on bank (profit) margins".

In June, Saudi Arabia, the United Arab Emirates, Egypt and Bahrain severed diplomatic ties with Qatar and imposed economic sanctions on Doha, accusing it of sponsoring Islamist extremists.

Doha denies the charges.

Last month, Moody's Investors Service estimated that around $30 billion were withdrawn from Qatar's banking system in June and July.

Moody's estimated that Qatar used $38.5 billion -- equivalent to 23 percent of its GDP -- to support the economy in the first two months of sanctions.

Qatar National Bank, the emirate's largest lender, last week reported a healthy increase in the net profits for the both third quarter and the first nine months of the year.

 

UN Security Council lenient to Turkey’s Syria offensive

Washington probes Hezbollah ‘narcoterrorism’

Tillerson to present US strategy on Syria to European, Arab allies

Russia pension funds may invest in Aramco IPO

Iranian woman skydiver looks to break down stereotypes

Qaeda leader calls on Muslims to attack Jews, Americans over Jerusalem

Palestinians in occupied West Bank get 3G

Turkish army clashes with Kurdish militia amid US alarm

Turkey arrests dozens accused of ‘terror propaganda’

Three French female jihadists face possible death penalty in Iraq

Women journalists protest separation during Pence visit to Jerusalem

Egypt military accuses presidential hopeful of committing crimes

Israeli minister calls to ban author praising Palestinian teen

Qatar supports Turkey’s offensive against Kurds

World powers meet on Syria chemical attacks

Morocco's king appoints five new ministers

Pence pledges US embassy move by end of 2019 on Jerusalem trip

Russia calls for diplomatic solution to Yemen conflict

Russia invites Kurds to join Syria peace process

Turkey shells Kurdish targets in northern Syria

Closer look at pro-Ankara rebels amassing around Afrin

Pence set for Palestinian snub

Abbas to ask EU to recognise Palestinian state

Saudi-led coalition to give $1.5 bln in Yemen aid

Mattis: Turkey gave US advance warning on Syria operation

Yemen releases budget for first time in three years

Saudi calls for cooperation between OPEC, non-OPEC countries

France presses Turkey to end offensive against Kurds

The changing faces of al-Qaeda in Syria

Kurdish militia fire rockets at Turkish town

Moroccans wary depreciation of dirham could raise cost of living, despite benefits

Deserted streets, terrified civilians after Turkey attacks Afrin

Iraqi, Kurdish leaders hold talks on bitter regional dispute

Russia-led Syria peace congress to be held January 30

Turkey launches new strikes on Kurdish targets in Syria

Egypt's Sisi says will stand for re-election

Pence heads to Mideast despite Muslim, Christian anger

Assad regime says Syria a 'tourist' destination

Journalists arrested while reporting Sudan protests

Aid for millions of Palestinians hostage to politics

Lebanon thwarts holiday attacks using IS informant

Mortar fire wounds 14 in Syria mental hospital

Turkish military fires on Kurdish forces in Syria's Afrin

More than 32,000 Yemenis displaced in intensified fighting

UN warns of "lost generation" in South Sudan's grinding conflict