Tuesday 10 October 2017

IMF tells Saudi Arabia: ‘You’re well on track, no need to go so fast’ | Arab News

IMF tells Saudi Arabia: ‘You’re well on track, no need to go so fast’ | Arab News:

"It is not often you hear the International Monetary Fund (IMF) urging “spend, spend,” while the client country replies “well, actually we’d rather hold on to the money for a while, if it’s all the same to you.” But something like that seems to have happened during the IMF’s recent country visit to Saudi Arabia. The IMF has a well-deserved reputation as an austerity merchant and usually seeks to impose a rigid regime of fiscal control. “Cut spending, increase taxes,” is the ritual formula. Saudi Arabia is not in the same league as countries that have to go begging to the IMF. It has no need to borrow money from the fund, because it is sitting on some $470 billion of reserves from the years when oil was $100-plus per barrel. There is no risk of Saudi Arabia going bust any time soon."



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