yota691 Posted August 29, 2019 Report Share Posted August 29, 2019 Bloomberg: Saudi Arabia seeks to borrow $ 10 billion from international banks Economy | 06:55 - 28/08/2019 BAGHDAD ( Reuters) - The Saudi Investment Fund has finalized the terms of a loan it seeks from several banks worth $ 10 billion, nearly a year after the last major loan, sources familiar with the matter said. The fund will pay an interest rate of 0.3% more than the London interbank rate, less than half the interest it paid on its previous loan, Bloomberg news agency quoted sources as saying. The sources said the loan would be for one year with an option to extend it for an additional 12 months. The fund is expected to repay the loan when it obtains $ 70 billion from the sale of a 70% stake in SABIC to Aramco. Aramco is expected to pay half of the deal this year and the rest in the next two years. The kingdom has borrowed heavily over the last few years to refill state coffers depleted by falling oil prices. According to budget data, the fiscal deficit estimates for the 2019 budget are about 131 billion riyals ($ 35 billion). Saudi Arabia's funding needs to meet this year's deficit are estimated at $ 35 billion and will be met through net debt issuance of about $ 31.5 billion. The rest will come from government deposits with the Saudi Arabian Monetary Agency (SAMA), according to the debt management office. By the end of 2019, the kingdom plans to raise its existing debt to about $ 181 billion, equivalent to 21.7% of GDP. Saudi Arabia is trying to "contain" exposure to the fluctuation of interest rates on the existing debt portfolio by reducing the proportion of debt instruments with variable return on the portfolio. At the end of 2018, fixed-interest debt accounted for 73% of Saudi issuances, and variable-rate debt stood at 27%. The government wants to increase the rate of fixed-interest debt to 78% of its portfolio by the end of 2019 1 Quote Link to comment Share on other sites More sharing options...
bostonangler Posted August 29, 2019 Report Share Posted August 29, 2019 (edited) It is hard to imagine they need loans, but I did read several years ago they are running out of oil and pumping water in to their wells to push oil out... Maybe they should cash in their gold Rolls Royce's… Gold is at a 5 or 6 year high. B/A Edited August 29, 2019 by bostonangler 1 Quote Link to comment Share on other sites More sharing options...
yota691 Posted August 29, 2019 Author Report Share Posted August 29, 2019 Is Saudi running out of oil? Today, Saudi Arabia announced the official results of a third party audit of its oil and gas reserves. The number is 263.2 billion barrels of oil.Jan 9, 2019 1 Quote Link to comment Share on other sites More sharing options...
yota691 Posted August 29, 2019 Author Report Share Posted August 29, 2019 Will we run out of oil? The world is no longer at risk of running out of oil or gas, with existing technology capable of unlocking so much that global reserves would almost double by 2050 despite booming consumption, BP has said.Nov 2, 2015 1 Quote Link to comment Share on other sites More sharing options...
yota691 Posted August 29, 2019 Author Report Share Posted August 29, 2019 Money is probably use towards this...More then likely they don't need it... Vision Programs Vision Progress Governance Media center NATIONAL TRANSFORMATION PROGRAM Quote Link to comment Share on other sites More sharing options...
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