Qatar bank lending falls $4.2bn in Q1 - report

LENDING LULL: Qatar saw a $4.2bn decline in lending compared to the last quarter of 2008. (Getty Images)

Bank lending in Qatar fell by QR15.5bn ($4.2bn) during the first quarter of this year, a seven percent decline from the end of December 2008, a new report reveals.

The total amount of bank loans for the first quarter of 2009 reached QR227bn, compared to QR242.5bn in the final quarter of 2008, the Peninsula newspaper reported.

The drop in lending over the first three months of the year came after the banks tightened their rules on issuing loans for housing, cars, personal use, services, and trade and industry.

According to the latest report from the Qatar Central Bank (QCB), personal loans formed the biggest chunk of all loans in Qatar while real estate loans made up for a total of QR37bn.

"Issuance of loans should be within reason and should reflect the current situation the economy is facing, in all its sectors," financial expert Abdulla Al Khater told the paper, commenting on the reduction in bank loans in the first quarter of this year.

"The economy right now is witnessing a mild slowdown, and therefore the banks’ policies should shift towards minimising this slowdown by increasing loans and not taking a strict attitude towards giving loans, so that the situation won’t reach the point where all industries are faced with lending problems," added Al Khater.

"The Qatari economy is a very stable one, and I hope that banks would reflect that, and not follow the same procedures of being reserved about giving out loans like in the past few months."

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM