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Gulf banks tighten credit for small firms

Gulf banks tighten credit for small firms

s are tightening lending conditions for small, private companies in the Gulf — a sign that the region’s economies are not escaping damage from the plunge of oil prices.

Mostly, the six rich nations of the Gulf Cooperation Council (GCC) are coping comfortably with the new era of cheap oil. Heavy state spending is keeping economies growing strongly.

Rather than borrow domestically or run down their deposits at local banks, governments of countries such as Saudi Arabia are covering much of the budget deficits due to cheap oil by bringing home some funds stored abroad.

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