raise SAR 80 billion every year

SoukarLili

Senior Member
Arabic
Hi,
KSA’s debt issuance base case is to raise SAR 80 billion every year from 2019 to 2023, until the fiscal balance improves. Volumes will be reduced in 2023 when the FBP expects KSA’s budget to go into surplus.

Does "raise SAR 80 billion every year" mean to increase debt by 80 billion SAR or to collect 80 billion SAR ?
Thanks,
 
  • kentix

    Senior Member
    English - U.S.
    debt issuance base case is to raise SAR 80 billion every year from 2019 to 2023

    I'm not an expert on this but from what I understand they are contemplating issuing some kind of bonds for sale every year for the next for or five years that have a value of 80 billion Saudia Arabian Riyals (each year). So when they sell the bonds, the Saudi government will have raised 80 billion SAR each year to spend on government projects. They will pay off the bonds (which represent debt) with future surplus income.

    They will raise 80 billion SAR per year by increasing their debt 80 billion per year. Bonds are debt. They have to repay the money to the people who bought them. Basically, those people are loaning the Saudi government 80 billion per year and expect to be repaid in the future.
     
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