Qatar facing financial crisis ever since it’s diplomatic relations were severed

Qatar facing financial crisis ever since it’s diplomatic relations were severed

Developing economies face harsh challenges, as new developments and projects need funding, Qatar’s funding grew stronger as it was and still continues to be the top LNG Gas exporter, Qatar also developed the country to a level where it happened to have the highest per capita income, and won the bid to host the FIFA 2022 World Cup.

But after the the Arab quarter boycotted the Qatar government because of its alleged support for terrorism, the Qatari government is currently facing a rising demand for loans since Doha’s financial revenues have declined, with ongoing expenditures rising, construction of the World Cup and other deals related to arms purchases. In April, Qatar issued the largest international bond on its date, with a total value of US $ 12 billion. A few days ago, Standard & Poor’s Ratings said Qatar topped the list of countries most vulnerable to rating cuts from the agency.

Data released by the Qatar Central Bank on Sunday showed that the total claims of local commercial banks on the government of Qatar amounted to more than 299 billion riyals ($ 82 billion), until August 2018.

Qatar’s debt to the local banks increased by 2.3 billion riyals in comparison with July figures of the same year. The debt of the Government of Qatar to local commercial banks is distributed between direct loans (credit), bond securities, bonds and sukuk.

The amount of loans and direct facilities (credit) owed to banks by the Government of Qatar is about 155.9 billion riyals ($ 42.7 billion) . On the other hand, the value of securities due to banks on the government of Qatar amounted to about 143 billion riyals (39.3 billion dollars), until August.