Sunday 23 April 2017

Saudi Plans More Bond Sales, Cheap Loans for Job-Rich Industries - Bloomberg

Saudi Plans More Bond Sales, Cheap Loans for Job-Rich Industries - Bloomberg:

"Saudi Arabia may offer “almost interest-free” loans to companies in labor-intensive industries as part of a plan to stimulate an economy squeezed by low oil prices and spending cuts, Finance Minister Mohammed Al-Jadaan said. Al-Jadaan, speaking in an interview in Washington, also said the government is on track to slash its budget deficit by 30 percent this year to about 200 billion Saudi riyals ($53 billion), and aims to finance it mainly through debt sales instead of drawing on reserves. This means the kingdom will likely tap global bond markets again this year after raising $9 billion from its debut Islamic debt sale, he said. Saudi Arabia has embarked on what it describes as an unprecedented shakeup of an economy that’s heavily reliant on oil. The so-called Vision 2030, spearheaded by Deputy Crown Prince Mohammed bin Salman, was announced last year and includes plans to sell shares in state companies and curb government spending on subsidies and wages."



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