Qatar raises QR2bn from treasury bill sales

(MENAFN- Gulf Times) Qatar, the world's biggest exporter of liquefied natural gas, raised QR2bn ($549mn) from treasury bill sales yesterday, half its target, as liquidity in the banking system tightens.
The Qatar Central Bank raised QR1bn from three-month securities and QR500mn each from six-and nine-month paper, according to a statement on its website.
The bank had planned to raise twice that amount from each of the maturities.
Overall bank deposits in Qatar have grown 0.4% in the 12 months through August, slower than credit growth of 32%, according to central bank data. That has altered the loans-to-deposits ratio to 107% in August from 81% a year ago.
"The central bank's bond issuances are used to absorb excess liquidity from the banking sector," said Monica Malik, the chief economist at Abu Dhabi Commercial Bank. "The drop in the amount the central bank raised this month could be a reflection of tightening liquidity as deposits declined in Qatar. We have seen that in other GCC countries where deposits in the banking sector have fallen as governments withdrew cash to partially help cover their spending programs."
Qatar sold three-month bills at a yield of 0.99% and received QR1.43bn in bids, according to central bank data. It received QR1bn in bids for the six-month securities and QR950mn for the nine-month notes at a yield of 1.2% and 1.32%, respectively.