Governments elsewhere in the Gulf are likely to follow Qatar and Abu Dhabi with dollar bond sales in the coming months as they look to secure funds in the face of low oil prices. The news that NMC Health was placed into administration today has led to concerns over banks’ exposure. Even if all lending to the firm is written off, capital ratios should remain above regulatory minimums. But the hit to banks’ balance sheets may cause credit conditions to tighten. Meanwhile, Lebanon took the first steps towards an official devaluation this week and Saudi Arabia is only likely to sign up to oil output cuts at today’s OPEC+ meeting if other producers agree to share the burden.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services