VOL. XXXVII

NO. 29

18-APRIL-1994

REGIONALFINANCING

SaudiDefense Loan Cut To $1.3Bn As Banks Show Resistance

Thecommercial loan which will finance the first of Saudi Arabias deferredpayments to US defense contractors was cut back to $1.3bn from the planned$1.865bn due to lack of interest from banks. The need to reduce the amountborrowed is the first concrete sign that Saudi banks ability to provide thegovernment with huge amounts of cash at short notice is finite. The loan wassigned on 13 April....