Saudi arabia is waiting deficit "huge" in its general budget 3-7
SAUDI ARABIA IS WAITING DEFICIT "HUGE" IN ITS GENERAL BUDGET
Ibn5 March 7, 2016 News , Economic , Titles 0
BAGHDAD / IBN
Revealed economist Nasser Yousef, said that the trend Arabia external borrowing, which was announced days ago at $ 10 billion, it is not only evidence of the vulnerability to severe acute decline in world oil prices, and increased pressure on public finances, in the wake of the collapse of world oil prices.
Yousuf said, in a press statement, "Monday, that" went Kingdom external borrowing, the result predicted to achieve a huge deficit in the current year's budget, where you expect a deficit of 326.2 billion Saudi riyals, the equivalent of $ 87 billion, and the deficit requires action to be covered. "
He explained that "among those procedures external borrowing or issuing bonds in the international markets, The kingdom can not only on the foreign exchange reserves accreditation to cover the deficit, especially as they pulled him large sums of money over the past year in 2015, to finance military operations in a number of Arab countries.
He pointed out that "foreign exchange to Saudi Arabia reserves scored at the end of last January, 654.5 billion riyals, according to data from the Saudi Arabian Monetary Agency, and resorted Arabia to withdraw about 200 billion riyals from the reserve over the past year, in order to continue the massive development projects government spending, in conjunction with the decline oil prices, pointing out that Saudi Arabia does not want to withdraw more from its reserves, so as not to affect its credit rating.
The assistance to the Lebanese government stopped, they saw that the kingdom always show that the reason for a politician, but the fact that a large rip from an economic reason, The situation has forced Saudi Arabia to reconsider its grants and aid to many countries, it is expected that the UK remains only on aid check interest and cancellation of aid, which sees futility, especially that Lebanon did not participate in the war in Yemen.
Yusuf stressed that "Saudi Arabia is very attractive to lenders, is expected to meet the request of the loan by the international institutions."