JPMorgan Bank is seeking to sell at a discount the sum of loans collected by the sovereign wealth funds of Saudi Arabia and the UAE.
According to Reuters, the move comes as part of the bank's preparation for a wave of borrowing in the Gulf region due to lower oil prices.
Two banking sources said that banks tend to keep loans granted to Gulf governments in their portfolios, and only reduce their exposure by selling in a framework of calm through bilateral operations, as they do not want to appear to be disposing of paper in the market.
This helps them maintain good relations with borrowers in light of future financing requests, but in light of the circulation of loans raised by oil-rich Gulf countries in general at their nominal values, there are also incentives for other banks to buy in the secondary market.
