The government has procured $7.9 billion in commercial loans from foreign banks from June 2013 to date at a considerably high interest rate, ranging between 4.5 percent to 2.5 LIBOR.
Economic Affairs Division revealed that the government borrowed $323 million in 2013-14, $150 million in 2014-15, $1387 million in 2015-16, and a whopping $4370 million between 2016-17.
A copy of the presentation further revealed that the government borrowed an additional $1022 million from foreign banks during the first four months of the current fiscal year and $70 million in the month of November 2017.
Yearly Borrowings
During 2013-14 the government borrowed $172.5 million from Standard Chartered (UK) at 3 month LIBOR, +4 percent rate of return for a period of one year, and $150 million from Credit Suisse at 3 month LIBOR +4.5 percent for one and a half years.
In 2014-15 the government borrowed $100 million commercial loans from Noor Bank UAE (against 3G/4G) at 3 month LIBOR +4.25 percent interest rate for 4 years, and $50 million from Al-Khiliji Commercial Bank UAE (merged with Credit Suisse) at 3 month LIBOR +3.81 percent for one year.
For 2015-16 the government borrowed $408 million and $325 million from Credit Suisse at 3 month LIBOR +2.8 percent and 3 month LIBOR +3.25 percent interest rate respectively for a period of one and half years, as well as $265 million from Noor Bank at 3 month LIBOR +3.75 percent rate of return for one year.
Additional Loans
The government also procured $250 million in commercial loans from Credit Suisse at 3 month LIBOR +2.66 percent for one year, $75 million from Noor Bank at 3 month LIBOR +4.1 percent rate of return for a period of fifteen months and $70 million from Dubai Islamic Bank at 6 month LIBOR +2.50 percent for one year.
The government further borrowed:
- $1 billion from China Development Bank at 3 month LIBOR + 3 percent for 3 years.
- $700 million from China Development Bank at 3 month LIBOR + 3.02 percent for 3 years.
- $700 million from Standard Chartered (UK) at + 5.14 percent for ten years.
- $650 million from Credit Suisse at 3 month LIBOR + 2 percent for one year.
- $245 million from Noor Bank at 3 month LIBOR +2.50 percent for 2 years.
- $300 million from Bank of China at 3 month LIBOR +2.70 percent for 3 years.
- $275 million from Citibank at 3 month LIBOR +3.226 percent for 3 years.
- $200 million again from Noor Bank at 3 month LIBOR +2.30 percent for 2 years.
- $300 million from Industrial and Commercial Bank of China Limited (ICBC) China at 3 month LIBOR +2.75 percent for 2 years.
Current Financial Year
In the current fiscal year, the government has borrowed $500 million from ICBC (China) at 3 month LIBOR +3.25 percent for 3 years, $267 million from Citibank at 3 month LIBOR +2.70 percent for 2 years, $255 million from Credit Suisse at 3 month LIBOR +2 percent for one year and $70.37 million from Standard Chartered Bank (SCB)-London.
Is there no check and balance on what a government can do especially with public finance? We have oue ex financial minister pursued by the courts. What could teh man or otehrs like him done to us?
Thank goodness for a relatively free press and an asserting judiciary, we get to know a little of what is happening to us even though we cant do much to stop teh plunderers and thiefs.