Banks are starting to report that the number of corporate borrowers falling behind with repayments in Gulf nations is beginning to decline.

Banks in the region, which set aside large provisions against bad loans last year, have said indicators for provisions are improving in wholesale lending.

Non-performing consumer loans have also continued to slow in the stressed banking sector.

Bankers and economists have continued to call on the Government to inject fresh liquidity into the system to stem job losses and non-performing loans.