Jul 06 2010
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Shariah loans plummet along with home prices
Islamic syndicated loans declined 40 per cent to $2.2 billion, compared with a five per cent drop in total lending to $304 billion, according to data compiled by Bloomberg.
"Banks have plenty of liquidity but they have been very selective when it comes to where they would like to deploy it," said Faisal Hijazi, the business development manager of rating services and Islamic finance in Dubai at Moody's Investors Service.
Middle East property developers have been forced to renegotiate debts after the global recession, prompting ratings agencies to downgrade credit rankings and making borrowing more expensive.
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