Oman’s sovereign wealth fund under pressure:
In the aftermath of the 2014 oil bust, Oman repeatedly tapped international debt markets to finance unprecedented budget deficits. Thus, its debt to GDP spiked to nearly 60% last year. Assets held by Oman’s sovereign wealth funds, in contrast, were largely safeguarded.
But the double shock caused by the coronavirus pandemic and plunging oil prices is leaving the indebted Gulf state with fewer options to finance its soaring 2020 annual budget deficit.
“Oman does not want to pile up too much debt,” said Fabio Scacciavillani, former chief strategist at the Oman Investment Fund, the country’s second-largest sovereign wealth fund.
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