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Posted On: 27 April 2011 09:30 am
Updated On: 12 November 2020 02:11 pm

Qatar eyes investments in Spanish banks

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Qatar is still studying investments in Spain’s savings banks but has not yet found the right opportunity for investment, said the chief executive of Qatar Holding, the investment arm of Qatar’s sovereign wealth fund. “In principle we are interested in doing something with the cajas (Spain’s regional savings banks). We are studying the right opportunities,” Ahmed Mohamed Alsayed told reporters yesterday at a meeting coinciding with the official visit of the Emir of Qatar. “If, if, if there is a good opportunity for us, we will do it,” he added. The Spanish government is trying to attract private capital for its unlisted cajas to plug a funding gap that the government has estimated at 20bn euros, caused by overly zealous lending during a property boom that turned to bust. Qatari Prime Minister and Foreign Minister HE Sheikh Hamad bin Jassim bin Jabor al-Thani said in February the state will invest 300mn euros ($438.7mn) in the cajas and suggested that more investments could be on the way. Credit rating agency Moody’s raised its estimate for the funding shortfall at the cajas to 50bn euros from an earlier estimate of 17bn euros in March, and said losses would be mostly concentrated in the cajas. Many of Spain’s cajas, which have are heavily influenced by the local governments of the regions where they are based, are considered to be a threat to the stability of the country’s financial system.