19:28 GMT +317 October 2019
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    End of Wealth: Raw Materials Crisis Hits Saudi Arabia, Rich OPEC Countries

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    Saudi Arabia is planning to issue government bonds amounting to 27 billion dollars. The country is experiencing a loss of revenue due to the fall in oil prices.

    The raw materials crisis has now reached the rich OPEC countries, DWN reported.

    Thus, Saudi Arabia has to take corresponding financial measures to counteract the fall in oil prices and ensure the liquidity of its state budget.

    According to the newspaper, the country is planning to issue government bonds of a total volume of 27 billion dollars by the end of the year. The maturities of the bonds will be five, seven and ten years.

    In July 2015, Saudi Arabia already issued its first bonds since 2007. The measure is expected to cover a budget deficit caused by the significant drop in oil prices.

    To avoid budget deficits, most OPEC countries need an oil price of over $100 per barrel or higher. However, the price per barrel has remained below the 50-dollar mark for quite some period of time.

    Related:

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    Shell to Cut 6,500 Jobs in 2015 to Reduce Costs Amid Low Oil Prices
    Oil Price Fluctuations at $50-$65 per Barrel 'Normal' - Energy Minister
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    Oil, bonds, crisis, Saudi Arabia
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