SAMA steps up funds drive
(MENAFN- Arab News) JEDDAH: The government plans to issue bonds on a monthly basis in the remaining period of 2015 to fund the expected deficit in its budget sources told the 'Maal' magazine.
They said that Saudi Arabian Monetary Agency has already notified Saudi banks of its plans.
Observers say the values of bonds will range from SR90 billion to SR100 billion in the remaining five months of 2015 or SR15 billion-SR20 billion per month.
SAMA Governor Dr. Fahad Al-Mubarak has earlier that the government issued bonds worth SR15 billion in the first half of 2015.
He said the bonds are aimed at bridging the expected deficit which according to the 2015 budget is poised to exceed the previously forecast figure of SR145 billion.
According to the sources cited by 'Maal' the bonds will carry 5 7 and 10 year time frames. Prices will be fixed next week.
It is also expected that liquidity of the banks will go to such tools during the coming period as the market according to the sources is thirsty to government issuances.
They said that Saudi Arabian Monetary Agency has already notified Saudi banks of its plans.
Observers say the values of bonds will range from SR90 billion to SR100 billion in the remaining five months of 2015 or SR15 billion-SR20 billion per month.
SAMA Governor Dr. Fahad Al-Mubarak has earlier that the government issued bonds worth SR15 billion in the first half of 2015.
He said the bonds are aimed at bridging the expected deficit which according to the 2015 budget is poised to exceed the previously forecast figure of SR145 billion.
According to the sources cited by 'Maal' the bonds will carry 5 7 and 10 year time frames. Prices will be fixed next week.
It is also expected that liquidity of the banks will go to such tools during the coming period as the market according to the sources is thirsty to government issuances.
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