Saudi Unveils 2015 Budget - $38.7bn Deficit Expected, Financing Options Considered
In the wake of falling oil prices, Saudi Arabia's Finance Ministry announced Thursday a 2015 budget with an expected deficit of $38.7 billion.
The ministry and the country's central bank will now discuss options for financing this large deficit, and may cover some of the shortfall via its large fiscal reserves and and also through some borrowing, Finance Minister Ibrahim Alassaf told Al Arabiya television late on Thursday.
"There is also a chance to borrow at good rates- this topic will be discussed with colleagues at the Saudi Arabian Monetary Agency at the appropriate time," Alassaf said.
Saudi Finance Minister Ibrahim Alassaf
He did not expound on the types of borrowing that might be used, Reuters reported. In recent years, Saudi state-run agencies and companies have periodically issued local- and foreign-currency bonds. However, the government itself has not done so, preferring to pay down its debt, the news agency said in a Friday report.
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