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Gulf Banks Are Refusing to Extend Qatar Deposits

  • Foreign deposits in Qatari banks fell by 7.6 percent in June
  • Saudi Arabia and the U.A.E. cut ties with the country
The Al Corniche promenade in Doha, Qatar.

The Al Corniche promenade in Doha, Qatar.

Photographer: Gabriela Maj/Bloomberg
Updated on

Foreign deposits at Qatar’s banks may fall further after dropping the most in almost two years in June as some Gulf lenders refuse to roll over holdings, people with knowledge of the matter said.

Some banks based in Saudi Arabia, the United Arab Emirates, Bahrain and Egypt, aren’t extending deposits with Qatari lenders when they mature, said the people, asking not to be identified because the information is private. These banks are concerned that they could face repercussions from their governments for continuing business relations with Qatar after they cut ties with the country, the people said.