Qatar's Credit Growth Expands by 35.5%: GSDP Report

Doha, July 16 (QNA) - Qatar's credit growth accelerated in the first months of this year, expanding by 35.3% through to April 2012, according General Secretariat for Development Planning report on Qatar s Economic Outlook for 2012-13. Credit to the personal sector climbed by 14.1% and that to the corporate sector jumped by 80.4%. Broad money supply increased by 12.1% year on year until end-March, the report said. Regarding banks interest rates, the Economic Outlook said, "Qatar Central Bank (QCB) has kept interest rates at the levels it set in its last reduction of August 2011." The report highlights the launch of the first Qatar Interbank Offered Rate (QIBOR) which was the result of the Qatar, QCB and Bloomberg teaming up to boost further the interbank market in Qatar. The QIBOR is available on QCB s website since May 6 this year. About banks' liquidity and deposits level, the report mentions a downward trend in the early part of 2012. Total deposits dipped by 0.4% in April 2012 compared with the corresponding period in 2011. The report cites decline in corporate deposits, which retreated by 12.3% for this dip. The bright spot, it said, was personal deposits which were robust, rising by 15.4%. Regarding the government budget for financial year 2012/13, it foresees a 28% increase in outlays compared with budget spending estimates for FY2011/12, though the increase is likely to be somewhat smaller set against realized expenditures. Programmed spending on major capital projects is to account for about 25% of total expenditure, rising by over 30% against actual outlays in FY2011/12. Sizeable increases in health and education expenditure are planned. The planning assumptions work on $65 per barrel of oil, up from $55, the report said. Qatar's official foreign reserves were $23.1 Billion at end-April 2012, down from a peak of $30.7 Billion in December 2010 but 6.0% higher than the 12-month earlier level, the economic outlook said. (QNA)