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.
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