#SaudiArabia Won’t Tap Debt Market Again In 2020, Minister Says - Bloomberg


Saudi Arabia Won’t Tap Debt Market Again In 2020, Minister Says - Bloomberg
Saudi Arabia has no plans to tap international debt markets again this year as the kingdom leans on domestic borrowing to cover its budget deficit, Finance Minister Mohammed Al-Jadaan said.
“We went to the local market significantly this year, we are likely to go to the market next year,” Al-Jadaan said in an interview with Bloomberg TV on Friday. “There are no plans currently for an international issuance.”
The world’s largest crude exporter is relying on more borrowing as it grapples with the impact of the twin economic shocks caused by oil market turmoil and the coronavirus pandemic. But the kingdom covered nearly its entire budget deficit with domestic borrowing in the third quarter, even as its fiscal gap widened 27% from a year earlier.
It also borrowed 45 billion riyals more than needed from domestic lenders, and will use that over-financing to help plug the rest of the year’s deficit, the finance ministry said last month. That means the kingdom won’t need to tap international markets in the last few months of the year, as Morgan Stanley similarly predicted earlier.

[Author: [email protected] (Rupert Neil Bumfrey)]


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