Posted on April 15, 2011

Car dealers in Qatar have said that restrictions imposed by the Gulf state's central bank on personal and car loans would have a hard impact on their business, the Peninsula has reported.

"The restriction is sure to hit our business hard since we will now have less number of customers coming to us," an official from a major car showroom, requesting anonymity, said. The central bank said in its recent circular that banks and financial institutions can lend only 80% of a car's value to a borrower.

The banks were until now financing up to 100% of a car's value. "And we were doing good business, as a result, as all the risk was that of the lending bank," the official noted.

source: ameinfo