Credit markets are sending a harsh message to Gulf companies slowly emerging from the global financial crisis and now seeking expansion opportunities: line up your best assets as collateral to secure financing.
The sovereign debt troubles in the euro zone, sluggish growth of the global economy and a recognition that they may have lent too freely in the past are prompting banks to become more cautious in their lending, and to demand tangible assets as backing for loans rather than implicit guarantees.
“The financing environment currently is certainly not conducive to borrowers in the region,” said Suketu Sanghvi, head of structuring and investments at Essdar Capital, an investment banking and fund management firm in Dubai.
No comments:
Post a Comment