Saudi Arabia is seeking a bank loan of between $6-8 billion, in what would be the first significant foreign borrowing by the kingdom's government for over a decade. Riyadh has asked lenders to submit proposals to extend it a five-year U.S. dollar loan of that size, with an option to increase it, the sources said, to help plug a record budget deficit caused by low oil prices. The kingdom's budget deficit reached nearly 100 billion dollars last year. The government is currently bridging the gap by drawing down its massive store of foreign assets and issuing domestic bonds. But the assets will only last a few more years at their current rate of decline, while the bond issues have started to strain liquidity in the banking system. http://www.reuters.com/article/us-saudi-loan-idUSKCN0WB0K1
For those of us in the oil industry whose jobs are hanging by a thread this counts as good news. Sooner or later the Saudis have to blink.