22945
Saudi Arabia to Raise $27b in Bonds
World Economy

Saudi Arabia to Raise $27b in Bonds

Saudi Arabia plans to raise $27 billion on the bond market by the end of 2015. Needing a $106 per barrel crude price to balance the budget, it’s trying to mitigate the 47% decline in oil.
Riyadh is planning to issue $5.3 billion in bonds each month until the end of the year, in tranches of five-, seven- and 10-year terms, RT, quoting its banking sources, said.
In July, Fahad al-Mubarak, the governor of the Saudi Arabian Monetary Agency, announced the first issuance of the Kingdom’s bonds in eight years. He said that Saudi Arabia had already issued $4 billion in national bonds.
Riyadh has spent $65 billion of its fiscal reserves since the oil decline began, down from the $737 billion maximum in August 2014, Financial Times reported.
If the information on the bond issuing plan is confirmed, this would justify that Riyadh wants to continue its government spending as if the oil price hadn’t fallen from $115 per barrel in June 2014 to less than $50 this week. Saudi Arabia keeps bankrolling high-cost infrastructure projects, public sector wages and a war in Yemen.
The irony is that Saudi Arabia played a key role in crushing the oil prices. This June in Vienna, Riyadh-dominated OPEC confirmed its November decision not to cut crude output from 30 million barrels a day.
The Saudi-triggered oil plunge has yielded in the short-term, as the rig count has reduced 60% since its peak in October, when there were 1,609 active rigs in the US.
Despite the promises at least not to increase the output, OPEC oil production in July rose to about 32 million barrels per day.

Short URL : http://goo.gl/a2Y9jS

You can also read ...

Russia Economic Recovery Underway
Retail sales in Russia picked up in April, while real wages...
While China tries to alleviate its demographic crunch, the aging society means a pension shortfall.
Forget that image of sweatshops making all kinds of cheap...
Greece at Crucial Point
Discussions are heating up over future debt repayments for...
Brazil CB Keeps Rates on Hold
Brazil’s central bank considered cutting interest rates last...
In 2017 banks had total mortgage lending of around $352 billion.
High levels of household debt are the greatest risk to Sweden’...
Peru Economy Strengthens
Economic growth in Peru strengthened in the first quarter...
EU Tells Italy to Cut Debt, Warns of Euro Spillover
Italy’s incoming government should aim to cut its heavy public...
Saudi Gov’t Told Not to Boost Spending
The International Monetary Fund urged the Saudi government not...

Trending

Googleplus