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Saudi Arabia repeatedly tapped the domestic sovereign debt market last year, raising a total of SR98bn ($26bn). It is expected to raise a further SR120mn ($32bn) in 2016, according to the latest update on the Saudi economy by Jadwa Investment.
Now, as part of its latest cash-raising plans, Riyadh appears to have asked lenders to submit proposals for a five-year dollar-denominated loan totaling $6-8bn, Reuters reports.
This would partially cover the 2016 budget deficit caused by the collapse in oil prices. The deficit for 2016 is projected at SR326bn ($87bn). This is somewhat lower than the estimated 2015 deficit of SR368bn ($98bn) in 2015 (MEES, 8 January). The 2016 figure is seemingly based on a $35/B oil price assumption. (CONTINUED - 738 WORDS)
DATA INSIDE THIS ARTICLE
|chart||SAMA Net Foreign Assets ($Bn)|
|table||GCC Sovereign Ratings Downgrades*|