Saudi Arabia to sell debt in the first sign the oil producer may be running out of cash

[Jefferson23]

The kingdom may increase public debt to as much as 50 per cent of GDP within five years

Hazel Sheffield
Tuesday 10 November 2015



Saudi Arabia is going to sell debt in the form of local and international bonds to shore up its public finances in the first sign that the persistently low oil price is taking its toll on the kingdom's economy.

Saudi officials have told the Financial Times that the kingdom may increase public debt to as much as 50 per cent of GDP within five years (which is still far below most Western economies).

The measure comes after a big fall in Saudi Arabia's foreign exchange reserves, which have been hit by the oil price falling by more than half in the last year.

A senior official told the FT that Saudi Arabia was not in crisis. “We can borrow, we have reserves, we are working on a revenue generation programme," the official said.

http://www.independent.co.uk/news/business/news/saudi-arabia-has-decided-to-sell-debt-in-the-first-sign-the-oil-giant-is-running-out-of-cash-a6728661.html

[DetlefK]

1. They tried to kill the US fracking-industry by keeping the oil-price artificially low.

Instead they incurred losses, they hurt Russia and they hurt Venezuela.



If Saudi-Arabia goes down, their domestic muslim extremists will pick it apart.

[polly7]

2. They should stop destroying Yemen and funding ISIS ......... that would save them millions. nt.

[KoKo]

6. Indeed! eom.

[Wellstone ruled]

3. There was a story about the

Saudi Royal Family being out of business by 2020. Anyone know were it went to? Guardian? Tried Google and nothing. Notice we are sill seeing a Commodity Crash yet today. So much for this TPP (NAFTA)clone eh,China just revalued it's currency few minutes ago. Twice in 24 hours.

[Jefferson23]

4. Never saw that one, if you find it, please post it. n/t

[Wellstone ruled]

5. It popped up about a week ago.

Spotted it late in the afternoon and the next day poof. The Saudi's are really touchie about negatives.

[KoKo]

7. Maybe some of the hundreds of Princes are living it up in CA & Las Vegas

and draining the family accounts. The others are close to England's Queen where they love their Horse Racing & Other Pursuits.

Who knows, though. They probably have plenty stashed away and are playing "Poor" for other ambitions....like More of our TAX DOLLARS to support our Endless Wars/Interventions that we need their help to carry on.

[Wellstone ruled]

8. There are Service People who will not

do service calls for any of the Saudi's unless they get paid in cash before any service is preformed.

[KoKo]

10. I've read...

They aren't kind to service people.....tending to leave hotel rooms a wreck from their social activities. So, its possible their experience has made them wary knowing what they have to deal with in advance.

[Wellstone ruled]

11. Was told by a Contractor

he has been trying to collect money due for a job for several years. These folks just do not pay their bills. This fellow thought,gee piece of cake,get paid in cash no problem. And to think yes they spend money and it is all on credit cards. Yes they are for the most part,real AssHoles.

[bemildred]

9. Yes, it was all over here for a couple days.

I didn't pay much attention to it, because I don't think anybody knows where we will be in five years, but it was hard to ignore.