Thursday 19 March 2020

Exclusive: Bahrain in talks for $1 billion loan after bond plans suspended - sources - Reuters

Exclusive: Bahrain in talks for $1 billion loan after bond plans suspended - sources - Reuters:

Bahrain is in talks with banks for a loan of about $1 billion after the Gulf state’s plans to issue international bonds were suspended due to bad market conditions, sources told Reuters.

The small Gulf oil producer, rated “junk” by all the three major credit rating agencies, is seeking funds amid a slump in global oil prices which is hurting its finances.

Bahrain was bailed out by some of its wealthier Gulf allies in 2018 to stave off the risk of a credit crisis after a prolonged period of lower oil prices pushed its public debt to nearly 93% percent of annual economic output.

The latest plunge in crude prices - due to a market share war between Saudi Arabia and Russia and the fallout from coronavirus - is now straining the finances of Gulf Arab states, with Bahrain and Oman particularly vulnerable.

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