World Cup Borrowing Binge Leaves Qatar’s Banks Grappling With Losses
The government is looking at how to shore up local banks’ balance sheets as they wrestle with rising loan losses following the 2022 World Cup.
The Katara Towers behind construction work in Doha in 2022.
Photographer: Christopher Pike/BloombergIt’s been almost two years since Qatar hosted the World Cup and the euphoria is fading as state-backed lenders that helped finance everything from highways and hotels to stadiums and sewage systems grapple with rising loan losses.
The Qatari government is now considering ways to shore up these banks’ balance sheets, according to people familiar with the matter, who asked not to be named discussing confidential information. The options on the table include hiring restructuring advisers, stepping in to buy struggling real estate portfolios from banks stung by defaults or forcing smaller lenders to merge.