Saudi Getting Broke, Seeking Loans… Results Of Risk Saudi Arabia Has Been Taking

Saudi Arabia needs more cash

by Armin Rosen,

According to The Wall Street Journal, the world’s second-largest oil producer is looking for an $8 billion loan from international banks. As The Journal reported, the country ran a record $100 billion deficit in 2015, largely because of the sharp decline in oil prices.

Over the past few months, Saudi Arabia has adjusted to low oil prices by following a strategy that seems primarily aimed at avoiding production cuts.

Riyadh has implemented new taxes, cut funding for social programs, and prepared to sell off parts of Saudi Aramco, the country’s multitrillion-dollar state oil concern. The moves are meant to cushion the long-term effects of lagging oil revenue without requiring any deeper cuts. Read full on BusinessInsider