Saudi Arabia is looking for $6-8 billion in bank loans to keep its public finances afloat

It first emerged that Saudi Arabia was looking to borrow money to shore up its public finances last week

Saudi Arabia is reportedly seeking a bank loan of $6 to $8 billion is what would be the first significant borrowing by the kingdom's government for more than a decade.

It emerged that Saudi Arabia was looking to borrow money to shore up its public finances last week. 
The kingdom has asked banks to submit proposals to lend it a five-year dollar loan of between $6 and $8 billion, Reuters reported, citing sources close to the matter.

Saudi has also asked for the option to increase the loan from this initial limit, as it looks to plug a record budget deficit of £100 billion in 2015 alone.

The kingdom is selling off foreign assets and issuing domestic bonds to try and shrink that deficit that has opened up since oil prices have slumped from over $100 a barrel in 2014 to around $30 a barrel today.

http://www.independent.co.uk/news/business/news/saudi-arabia-is-looking-for-6-8-billion-in-bank-loans-to-keep-its-public-finances-afloat-a6922546.html


Been said for some time that Saudi had shot itself in the foot by driving down oil and it was in trouble.  This not reinforces that belief.  Many are of the opinion that we are see the last days of Saudi influence.  That would certainly be a good thing with the horrendous number of executions they are carrying of for the slimmest of reasons, even though David Cameron did go out of his way to get them onto the UN Human Right Council, one of the most disgusting thing he has ever done.  Then compounded it by selling them arms to destroy Yemen.

I was thinking about shorting their bonds.

Unfortunately $190,000 per year for an insurance premium is too rich for my blood and stomach.

But someone will get rich over their downfall, should they default.

Someone always gets rich over downfalls don't they!

I don't think anyone would have predicted this 10 years ago, would they?

Some people were praising Saudi not long back for taking the lead in fighting global terrorism and forming the Islamic military alliance.