Saudi Arabia May Borrow $60bn to Cover Its Budget Deficit: Minister
TEHRAN (Tasnim) – Saudi Finance Minister Mohammed Al-Jadaan said that the kingdom may have to borrow $60 billion to cover the huge budget deficit caused by the coronavirus pandemic.
Speaking to Al-Arabiya TV, Al-Jadaan explained that the kingdom might have to take “painful measures” to counter the economic repercussions of the coronavirus pandemic and the collapse of oil prices, the Middle East Monitor reported on Monday.
After Al-Jadaan’s recent remarks, Saudi shares have fallen by 6.8 percent.
On Thursday, the Saudi Jadwa Investment company expected the kingdom to record a budget deficit of $112 billion this year.
Last April, the International Monetary Fund said it expected the Saudi economy to contract by 2.3 percent.
Meanwhile, Capital Economics, a London-based think-tank, said Saudi’s economy would shrink by at least five percent as a result of its dependence on oil sales.