VOL. XXXI

NO. 14

11-JANUARY-1988

SAUDI ARABIA WILL BORROW TO FINANCE REDUCED 1988 DEFICIT

Reduced spending in the 1988 Saudi Arabian Government budget has cut thedeficit by nearly one-third, to $9.6bn, but for the first time in 25 years theKingdom has announced its intention to borrow. A debt ceiling of $8bn has beenset, and the planned draw-down of government reserves thereby reduced from$14.1bn in 1987 to $2.1bn in 1988. Oil revenue of $18.4bn is expected for theyear, a level which would be...