Saudi Arabia Plans to Borrow up to 50% of GDP
Posted on 03/20/2020
In a release to the public, Saudi Finance Minister Mohammed Al-Jadaan says the Saudi government plans to extend borrowing up and received approval from the Saudi King to raise the debt ceiling to 50% of gross domestic product from the previous 30% of GDP threshold.
Global oil demand is set to plunge as the world economy faces a standstill from the Wuhan coronavirus pandemic. An Italy-style lockdown applied to the whole U.S. and Europe would drastically impact the price of oil. As oil prices come crashing down hovering around US$ 20 to US$ 30 per barrel, the Saudi government is looking to cut spending in its fiscal budget.
The Saudi government is looking at a stimulus package that will include the suspension of the collection of customs duties on imports for a period of 30 days against the submission of a bank guarantee.
Keywords: Ministry of Finance of Saudi Arabia.
