Saudi Arabia Is to Borrow $4 Billion Because of Low Oil Prices

11:51     16 July, 2015

Saudi Arabia has borrowed $4 billion from local banks in the past year in order to cover a budget deficit which is caused by low oil prices.

The governor of the Saudi Arabian Monetary Agency Fahad al-Mubarak said that the government will use a combination of bonds and reserves to maintain spending and cover a deficit that will be larger than expected, about $130 billion this year, Sputnik News reports.

"We expect to see an increase in borrowing," announced the governor.