Running a bank in Qatar appears to be getting easier
all the time. The local governments latest bailout plan
for its financial sector will involve the state clearing up to
$4.1 billion of troubled real estate loans and investment from
lenders balance sheets.
Details have been sparse for
example, about who will manage the assets. With the government
lacking institutional capacity to collect repayments, the job
might go back to the banks potentially allowing lenders
to reap fees for this.
The overall aim is to boost
profitability in the sector and get firms lending again, to
spur the economy outside the hydrocarbon sector.
Most assume the plan is principally concerned with
banks local exposure. But if banks are keen to redeploy
the capital to assets that generate better revenue, most of the
cash will flow back to the local real-estate market,...