Monday 3 March 2014

MENA sovereigns' commercial borrowing to increase to US$56 billion, says S&P - bi-me.com

MENA sovereigns' commercial borrowing to increase to US$56 billion, says S&P - Business Intelligence Middle East - bi-me.com - News, analysis, reports:



"Standard & Poor's Ratings Services projects that the 12 sovereigns that it rates in the Middle East and North Africa will borrow an equivalent of $56 billion from long-term commercial sources in 2014.



This would be a 27% increase in long-term commercial debt issuance compared with 2013. About 67%, or $38 billion of the sovereigns' gross commercial borrowing will be to refinance maturing long-term commercial debt, compared with $25 billion in 2013, resulting in an estimated net commercial borrowing of $18 billion.



Consequently, we project that rated MENA sovereigns' commercial debt stock will reach an equivalent of $462 billion by the end of 2014, up by $17 billion, or 4% from 2013. Adding in bilateral and multilateral debt, the total stock will reach $504 billion, a year-on-year increase of $15 billion, or 3%. We expect that outstanding short-term commercial debt will reach $145 billion at year-end 2014."



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