Saudi Arabia struggling to boost bank liquidity | The National:
"Easier lending rules and direct cash injections are doing little to alleviate a cash shortage at Saudi Arabian banks, now at its worst since the financial crisis.
The government is seeking to plug a hole in its finances by withdrawing deposits and selling local currency bonds to lenders in monthly auctions. The country, grappling with lower oil prices, raised 98 billion riyals (US$26bn) from bond sales to domestic institutions last year, with that figure probably set to rise to about 120bn riyals in 2016, according to Saudi Fransi Capital.
That’s draining funds from the system, reflected in interbank rates in Saudi Arabia that are at their highest since 2009 and which climbed 15 straight days through Monday."
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