Saudi 'To Borrow To Finance Soaring Deficit', Says Report

[Purveyor]

08 April 2015 - 13H26

The Saudi budget deficit will be more than twice its own forecast, a leading research firm has said, forcing the kingdom into the debt market for the first time in more than a decade.

Hit by plunging crude prices, the world's biggest oil exporter will post a deficit of $106 billion, compared with a government projection of $39 billion, Saudi firm Jadwa Research said in a report released late Tuesday.

The kingdom that exports 7.0 million barrels per day on average will see oil revenues fall by 35 percent to $171.8 billion in 2015, the quarterly report said.

Total revenues are forecast down 33.7 percent at $185 billion, while public spending is expected to remain almost unchanged at $290.9 billion.

Jadwa said the government is highly expected to return to the debt market for the first time in around 15 years despite its massive reserves.

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http://www.france24.com/en/20150408-saudi-borrow-finance-soaring-deficit-says-report/

[leveymg]

1. Read less than a month ago that KSA had $900B in reserves.

Boy, they sure blew through that fast. G-ddamn wars are expensive. Or, else, this is an opportunity to flush some more good-will money through the Eurozone and US financial sectors.

[Wellstone ruled]

2. They raised their output to 9 million Barrels per day yesterday.

Got a hunch we will see something major as to the viability of the so called Saudi Royal Family,is going to happen by summers end. Something is afoot,noticed many of the Royal's are dumping their fancy homes and estates around the U.S.. Also,they sold their most of their position in Citi Group,and they have dumped other assets. Are the worlds creditors finally collecting their past dues?

[benld74]

3. Gee $$$ pouring in, new buildings going up, cheap labor, what could go wrong?????