Even the Smallest Gulf Economy Is Too Big to Fail - Bloomberg

Even the Smallest Gulf Economy Is Too Big to Fail - Bloomberg:

"Its economy is 5 percent the size of Saudi Arabia’s, but analysts are betting the kingdom won’t let its neighbor’s financial woes morph into a Gulf crisis. Bahrain, one of the most vulnerable economies in the Gulf Cooperation Council to political instability and oil-price swings, sought financial support from Saudi Arabia and the United Arab Emirates to replenish its foreign reserves and avert a currency devaluation, according to two people with knowledge of the issue. A third person said Kuwait was also approached. The three countries responded by asking Bahrain for more efforts to control its public finances in return for the money, the people said on condition of anonymity. Bahrain 12-month forward contracts jumped on Wednesday by the most in more than a year, while its dollar bonds fell for a second day."



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