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.
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.
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:
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.
