Article

2016-03-11 Arabia

Saudi Arabia Seeks $6-8 billion Loan to Shore up State Budget

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Posted by Fred 2016-03-11 00:00|| || Front Page|| [11128 views ] Top
File under: Govt of Saudi Arabia

#1 Am I imagining things or what? Saudis being hoisted by their own petard? Dropped the price of crude by pumping at max to hurt American frackers and others. Low prices sustained because Iran now back in the market. So to keep up the welfare state the Saudis sell assets to make up difference between lower revenues and expenses. Now they need a bridge loan while they try to sell assets in an orderly way to avoid taking a financial bath.

This veddy interesting. A source of innocent merriment if true.

Posted by Alaska Paul 2016-03-11 00:43|| 2016-03-11 00:43|| Front Page Top

#2 And with other gulf states in the same boat, they are doomed to a steady decline towards bankruptcy if prices hold. If they decrease production then others will increase production. If they start to cut their welfare state then they face unrest at home. This is most interesting. Every disaster is a new opportunity.

Posted by Alaska Paul 2016-03-11 01:07|| 2016-03-11 01:07|| Front Page Top

#3 I would like to see this turn into a long term retrenchment where KSA withdraws from all of its expensive subvertiing in the wider world and withdraw into a quaint local tribe and take the rest of the sheikdoms with them.

Posted by AlanC 2016-03-11 07:43|| 2016-03-11 07:43|| Front Page Top

#4 So it begins.

Where's the graphic with the money swirling down the drain? I looked.

Posted by Bobby 2016-03-11 08:20|| 2016-03-11 08:20|| Front Page Top

#5 The only thing worse than economic collapse would be if Iran could get a Nuc. Thankfully that can't happen.

Posted by BrerRabbit 2016-03-11 08:34|| 2016-03-11 08:34|| Front Page Top

#6 Given the present political climate in the USA I cannot visualize an American bank initiating a loan with Saudi Arabia if it values its reputation.

Posted by Bugs Unaviper5548 2016-03-11 09:46|| 2016-03-11 09:46|| Front Page Top

#7 Let me know when they're eating sand, and posting pictures of starving Saudi children.

Posted by Spinesing Gray3122 2016-03-11 10:41|| 2016-03-11 10:41|| Front Page Top

I set width=500 for you -- not setting the width distorts Rantburg, while setting it much bigger than 500 can make it very hard to read. I find it easier to use the images in Fred's extensive library, which come properly sized.

-- trailing wife at 12:40 a.m. ET

Posted by Snoque Guelph8086 2016-03-11 10:43|| 2016-03-11 10:43|| Front Page Top

#9 15 of the 19 911 hijackers were Saudis. The Individuals and charities based in Saudi Arabia financed al-Qaeda while Saud officials turned a blind eye. The Saudis have financed and spread Wahhabism which is full of hatred aimed at the West. They have raped the West via OPEC for decades. A $6-8 billion loan to support the state budget--screw em. We are not in the best of shape to finance anyone's budget thanks to our elite betters in Washington (sarc).

Posted by JohnQC 2016-03-11 10:55|| 2016-03-11 10:55|| Front Page Top

#10 You don't think Champ will try to buy favors by lending out $10 billion of our grandchildren's future? To build his "Legacy".

Posted by Bobby 2016-03-11 10:57|| 2016-03-11 10:57|| Front Page Top

#11 I can see Obumble and others that are tight with the Saudis running to "save" them.

Once the oil empire collapses in the Middle East things will get really interesting, really quick.

Posted by DarthVader 2016-03-11 11:03|| 2016-03-11 11:03|| Front Page Top

#12 My reaction to this is "Fuck them."

Posted by Crusader 2016-03-11 11:04|| 2016-03-11 11:04|| Front Page Top

#13 Given the present political climate in the USA I cannot visualize an American bank initiating a loan with Saudi Arabia if it values its reputation.

Did you see the piece about how Chase isn't going to provide credit for coal plants in the US anymore? Only in "underdeveloped countries" or whatever phrase they used.

Posted by Thing From Snowy Mountain 2016-03-11 11:44|| 2016-03-11 11:44|| Front Page Top

#14 Baraq gives 'em $10 billion of the taxpayers' money and they give him a couple million for his library.

Posted by Ebbang Uluque6305 2016-03-11 12:17|| 2016-03-11 12:17|| Front Page Top

#15 Keeping oil prices low is a good way to starve Iran until they burn through the $150B that 0bean gave them for nothing in return. And starve Maduro into submission. And ISIS. I guess we owe the Saudis here. Cheap by comparison.

Posted by gorb 2016-03-11 12:25|| 2016-03-11 12:25|| Front Page Top

#16 If they start to cut their welfare state then they face unrest at home.

They've already started cutting subsidies on a variety of things loke utilitiy bills and gasoline, Alaska Paul. As I recall, they only have reserves to cover five years of expenses at the current oil price before they have to start selling off assets. So reducing expenses has already begun.

Posted by trailing wife 2016-03-11 12:44|| 2016-03-11 12:44|| Front Page Top

#17 ...no problem. Just sell the assets to foreigners then after collecting the money, just nationalize them. They'll come back. Watch whats happening with Cuba now.

Posted by Procopius2k 2016-03-11 13:14|| 2016-03-11 13:14|| Front Page Top

#18 gorb, don't forget Russia.

Posted by Sven the pelter 2016-03-11 14:09|| 2016-03-11 14:09|| Front Page Top

#19 Meanwhile, here in the Puget Sound area, gas prices have jumped more than 10 cents in the last week. Where is all that over production going?

Posted by USN, Ret. 2016-03-11 14:31|| 2016-03-11 14:31|| Front Page Top

#20 ...you didn't get the message, it's exportable now.

Posted by Procopius2k 2016-03-11 15:08|| 2016-03-11 15:08|| Front Page Top

#21 Barack to BEP "Start the presses".

Posted by g(r)omgoru 2016-03-11 16:45|| 2016-03-11 16:45|| Front Page Top

#22 And speaking of natural gas, check out THIS ARTICLE.

Posted by Alaska Paul 2016-03-11 17:46|| 2016-03-11 17:46|| Front Page Top

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