Middle East Banks Face $180 Billion Hit From Coronavirus Crisis, IMF Warns

Middle East Banks Face $180 Billion Hit From Coronavirus Crisis, IMF Warns

A man wearing a face mask gazes at the Dubai skyline, during a lockdown imposed to slow the spread ... [+] of coronavirus in the UAE city on April 5, 2020. (Photo: KARIM SAHIB/AFP via Getty Images)



AFP via Getty Images

Banks in the Middle East could have to absorb $180 billion in costs from defaults and non-performing loans, according to the International Monetary Fund (IMF).

In its latest economic outlook report for the region, the IMF said a stress-testing exercise showed that oil exporting countries in the Middle East and North Africa, Afghanistan and Pakistan face the largest banking losses, amounting to an estimated $150 billion, or 6% of GDP.

Oil importing countries would be less badly affected, with losses of $30 billion