The 2009 financial crisis may have been global, but its effects in each country had a distinctly local flavour. None more so, perhaps, than the United Arab Emirates, where a highly mobile population of expats faced potential jail time over bounced cheques or defaults on loans.
Turkey’s currency crisis – spurred by burgeoning hard currency corporate debt and a large trade deficit – caused a debt restructuring boom in 2H18. President Erdogan’s unorthodox monetary policy and a fragile relationship with the US - peaking with the pastor Brunson spat – poured further fuel on the flames of economic turbulence.
This week’s collapse in oil prices has sent shockwaves across the GCC credit space, said two UAE-based asset managers and a London-based banker. Both WTI and Brent crude hit a three-year low on Tuesday (13 November), and although prices had stabilised by Thursday, a negative mood has set in, they said.