The consequences of the conflict with Russia: Riyadh will take billions

The Saudi leadership is considering borrowing up to 100 billion riyals in the foreign capital market, which is equivalent to about 27 billion US dollars. This was announced on April 22 by the Minister of Finance and part-time as Minister economics and planning for the Middle East monarchy of Mohammed al-Jadaan. His words are quoted by Al Arabiya (UAE).

According to the official, the government plans to use no more than $ 31 billion from its own reserves to refinance the budget deficit of the monarchy, which was formed as a result of a price war with Russia and the subsequent collapse in the cost of oil. At the same time, al-Jadaan did not fail to confirm once again that the state has sufficient financial reserves for a long struggle with the crisis that arose as a result of the global pandemic of a new infection.

The kingdom has fiscal capacity to overcome the crisis. And the next loan will only confirm our solvency. As a result, we will become even stronger, having entered a stronger position. This is not the first challenge in our history.

- emphasized the minister.

Despite the optimistic assurances of the Saudis, experts asked why the state with reserves intends, firstly, to borrow a large sum, thereby increasing public debt to an impressive $ 60 billion, and secondly, it is going to tighten its belts, oh than al-Jadaan also casually declared.

Certain measures will be taken to reduce costs and some savings. This is a temporary need.

- he said.

According to experts, in an effort to borrow money from an external investor lies the desire of the government to prove the solvency of the monarchy, its stability and responsibility, which in the conditions of crumbling markets is a very useful indicator for any national economy. Also, some experts suggested that Riyadh, suffering from the consequences of a price war with Russia no less than its “opponent,” is confident that the crisis will end soon and is trying to gain a foothold, while there is still no excessive demand for loans in the financial markets and, as a result, expensive loans.

Cutting costs on “some trips, events, and long-term projects,” Saudi Arabia, nevertheless, allocates huge funds to support healthcare ($ 13 billion) and stimulate business activity while distributing one-time help to ordinary citizens (34 billion).
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  1. Observer2014 Offline Observer2014
    Observer2014 April 25 2020 12: 04
    Saudi leadership is considering borrowing up to 100 billion riyals in the foreign capital market, equivalent to about 27 billion

    So I see my fellow citizens orgasmed about this, especially with a civilian pension and salary. wassat laughing Muscovites, used policemen and warriors, do not worry. You are yes-ah-ah-vn something else. I'm talking about us. Russians.
    1. 123 Offline 123
      123 (123) April 25 2020 18: 00
      So I see my fellow citizens orgasmic about this, especially with a civil pension and a salary. Muscovites, boo policemen and warriors, don't worry. You are yes-a-a-a-obviously something else. I'm talking about us. Russians.

      If everything in life does not suit you, this does not mean that everyone has it. I understood correctly, you true a representative of the Russian people, but everyone who has a different pension, "slavers of power", policemen, etc., are they not the people?

      The supplementary pension system created in the Khanty-Mansiysk Autonomous Okrug - Ugra (hereinafter referred to as the Autonomous Okrug) is today unique in the Russian Federation and is aimed at increasing the income level of pensioners of the Autonomous Okrug in comparison with the all-Russian one, as it provides for an additional life pension for certain categories of citizens

      A list of categories of citizens can be found here.

      There are additional pensions.

      He himself transferred according to the co-financing program, 50% you pay yourself, another 50% the employer. A number of enterprises have a “corporate” pension.
      Are they not real Russians either?
      Each blacksmith himself, with his own happiness, can continue to sit in his hollow, peep at how others live, just do not tell me that you are all alone so offended and there are people. Whine on your behalf.
  2. Igor Pavlovich Offline Igor Pavlovich
    Igor Pavlovich (Igor Pavlovich) April 25 2020 12: 22
    Consequences of the conflict with Russia: Riyadh will take billions.

    - The title of the article in Russia.

    The consequences of the conflict with Riyadh - no one will lend to Russia.

    - The title of the article in Saudi Arabia.
  3. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) April 25 2020 12: 37
    And, something is not heard that the sheikhs began to sell their gilded cars ...

    There were articles there, the warehouses of abandoned cars are packed with rarities of past years. Collectors around the world quietly come to rummage ....
  4. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) April 25 2020 21: 32
    By the way, there was news - the Saudis began to buy up the shares of cheaper enterprises. On state. level.

    Here is a loan and come in handy.
  5. The comment was deleted.
  6. Natan bruk Online Natan bruk
    Natan bruk (Natan Bruk) April 26 2020 06: 07
    So, in Russia, after all, is it?
    1. Digital error Offline Digital error
      Digital error (Eugene) April 26 2020 22: 30
      Quote: Natan Bruk
      in Russia still overpower?

      The fact that the increase in government borrowings “will largely lie on the balance of banks” was also reported by First Deputy Prime Minister Andrei Belousov at the meeting: “Today, the total amount of investments in debt securities from banks is a little over 12 trillion rubles. The additional need for borrowing from the state, based on the situation with the budget, may amount to 1,5-2 trillion rubles.

      In total, we have the need of the state to borrow up to $ 26 billion from banks (in which citizens' deposits "lie"). If you believe Alexei Kudrin, on the accounts of citizens about 30 trillion rubles. ($ 400 billion), so there is no need for "withdrawal."