In the eyes of the International Monetary Fund, the greatest risk facing Qatar is a worsening of global liquidity and financing conditions.
Individual banks, especially those that rely on large wholesale funding might face liquidity pressures and either have to resort to the central bank for dollar funding or deleverage, warns the IMF, apart from in foreign reserves of the central bank and lower valuation of Qatar's external assets portfolio.
"Nevertheless, risks to banking stability appear much lower now after three rounds of bank capitalization and asset restructuring since 2008," concedes the Fund. Qatar tapped the market with a USD5 billion sovereign bond issuance at favourable yields in November.
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