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Qatar’s local debt instruments record QAR 36bn in 2018- Survey

Qatar’s local debt instruments record QAR 36bn in 2018- Survey
Qatar issued domestic debts worth QAR 36.2 billion ($9.9 billion) this year

By: Eman Ghaly

Mubasher: Qatar’s domestic debt instruments declined 22.2% year-on-year in 2018, according to a survey conducted by Mubasher.

Qatar issued domestic debts worth QAR 36.2 billion ($9.9 billion) this year, compared to QAR 46.5 billion ($12.8 billion) in 2017, the survey revealed.

The total number of the Qatar Central Bank's (QCB) issues also fell to 45 in 2018, versus 48 last year, including treasury bonds, bills and sukuk.

This drop was due to many factors, including the issuance of $12-billion bonds by the Ministry of Finance in April, higher oil prices, and budget surplus versus a deficit of QAR 28.1 billion last year, according to the survey.

The Ministry of Finance projects a budget surplus of QAR 23 billion ($6.3 billion) this year, which represents 3.3% of the gas-rich country’s gross domestic product (GDP).

However, Moody’s Credit Ratings forecast a marginal surplus in Qatar’s 2018 budget, that amounts to QAR 2.3 billion, or 0.4% of GDP, compared to the government’s estimate of QAR 28.1 billion in deficit.

The Qatari’s Public Debt Law allows the Ministry of Finance to borrow from local and international banks and issue debt instruments, bonds, and sukuk that does not exceed QAR 36.4 billion ($10 billion) in value.

In 2018, the central bank offered six issuances of sharia-compliant debt notes with a total value of QAR 8.8 billion, as well as another six issuances of domestic bonds that totalled QAR 16.6 billion.

Qatar, the world's richest country per capita, sold three-month, six-months, and nine-month treasury notes in 33 issuances, for a combined value of QAR 10.7 billion.

Public Debt

Early estimates of total public debt indicate that it grew 12.3% to QAR 333.5 billion ($91.6 billion) by the end of November, from QAR 297 billion ($81.6 billion) in the prior-year period.

The Ministry of Development Planning and Statistics’ economic horizon report ascribed the increase to the issuance of sovereign bonds of QAR 43.7 billion ($12 billion) in April 2018, pushing the external debt up 33% to QAR 145.2 billion, versus QAR 108.9 billion in 2017.

Qatar settled QAR 7.3 billion ($2 billion) of debts with foreign creditors, the report added.

Moreover, the QCB paid back QAR 11.84 billion of treasury notes, and the Ministry of Finance repaid QAR 8.4 billion of sukuk and QAR 15.05 billion in bonds.

 

Translated by: Mohammad Shokhba