LONDON: Qatar pumped about $43 billion into banks last year after a boycott by some of its neighbors caused a drop in deposits, according to a top ratings agency.

The government and state-controlled companies injected the cash into the financial system after about $22 billion of deposits flowed out of the country between June and December, said Mohamed Damak, S&P’s senior director for financial services, Bloomberg reported.

Qatar is in a standoff with neighboring states, who accuse it of supporting terrorism. Doha denies that it supports terror groups.

The government intervened “quite strongly” to help banks and allow them to increase lending and finance government projects, Damak told Bloomberg.

He expects outflows from the Gulf countries involved in the standoff to continue this year and said the banks can withstand the withdrawals because they hold between 20 percent to 40 percent of their assets in liquid securities, the newswire reported.