Saudi Arabia 'to borrow to finance soaring deficit', report claims. (AM).
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.
"The government is now expected to issue debt as part of its deficit financing strategy," it said.
Hmmmm......If Iranian oil is massively dumped on the market expect this deficit to be even larger and not limited to just the Saudis.Read the full story here.
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