Saudi Taps Domestic Market For $4bn Amid Soaring Deficit

Saudi Arabia has raised SR15bn ($4bn) in debt from domestic financial organizations and has drawn down its reserves to cover its larger than expected budget deficit in 2015, Governor of the Saudi Arabian Monetary Agency (SAMA) Fahd al-Mubarak says.

The government is tapping the domestic bond market for the first time since 2007 and expects to borrow additional funds from the local market in order to sustain its elevated level of public spending, he adds. Financial surpluses accumulated during past years of high oil prices put the country in a position to maintain spending despite the decline in oil revenues, Mr Mubarak says.


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