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Borrowing costs might slow bank lending in Qatar

Qatari banks' local-currency borrowing costs climbed to the highest in more than 15 months amid signs bank funding levels may restrain a lending surge in the Gulf country preparing to host the 2022 football World Cup, Bloomberg has reported. The three-month Qatar Interbank Offered Rate rose 12 basis points this year to 1.29286% on May 2, the highest level since January, 26, 2011. The rate, which reflects how much banks charge to lend to each other, was 1.26429% yesterday. Annual loan growth to private businesses slowed for a second month to 15% in March, from 21% in January, central bank data showed. Total deposits declined to QR348.4bn ($96bn) in March from QR363.6bn in December, the data showed.