Saudi Arabia to adjust the general expenditure
Saudi Arabia, Economics, 11/13/1998

Saudi Arabia decided to continue its policy of not borrowing from foreign markets and resort to raising loans only from local banks to fill deficits in the budget of the current year as a result of the collapse of oil prices which constitute the largest portion of the income of the country.

Economic sources said that the Saudi government respected its pledge to adjust expenses of the current year which will reduce actual expenses to less than the projected level at the beginning of the year amounting to 52.2 billion dollars.

The sources added that the Saudi government did not demand any foreign loans for the current year but it obtained loans from national banks.

A banker who did not want to be named said "we presented several loans to the Saudi government for the current year but we did not notice any unusual drawing on that line of credit which means that the kingdom doesn't need large sums and that it has reduced general expenditure, in reality."

In a recent interview with the Okaz daily, the Saudi Crown Prince said that despite the cuts in services the kingdom will take care that the cuts in services do not effect the needy.

A Saudi official had mentioned to ArabicNews.com that the current budgetary constraints will not be as severe as previous budgetary crisis since the government had cut a lot of the fat out of the public sector. The official added that there is an ongoing privatization effort in several sectors that include electricity and phone services and other areas citing the Saudi Airlines's executive private-jets division

Previous Stories:
  Saudi Arabia - Iran hold oil talks   (11/10/1998)
  Saudi Arabia hosts first international conference on financing petrochemical industries   (10/31/1998)
  Despite depression of oil prices, Saudi economic outlook good   (9/29/1998)

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