Riyadh - Mubasher: Saudi Arabia has multiple financing options, in order to meet large financing needs over the coming years, the international monetary fund (IMF) said in a recent report.
KSA can draw down the large stock of government deposits held at the central bank, sell other financial assets, or borrow domestically or abroad, the report indicated.
The large and sustained decline in oil prices since the second half of 2014 has turned Saudi Arabia’s fiscal surpluses of more than a decade into deficits and increased the need for financing, added the report.
The Saudi government owns many non-listed companies including the very large oil company ARAMCO, which even if a small portion of it is privatized, the reinvested proceeds could generate sizable investment income for the budget, stated the report.
The report also said that the government is working to develop a comprehensive strategy to meet its budget financing needs.
“It is working to strengthen the regulatory and institutional framework, particularly the debt management framework, and to better integrate the two sides of the government balance sheet to efficiently meet the financing needs of the budget both domestically and in the international financial markets.”
