Saudi 'Borrow' Foreign Funds for First Time in 25 Years

Import of oil of Saudi Arabia, which is the main source of revenue, down 23% last year.

Saudi Arabia reportedly will receive a loan agreement of US $ 10 billion or Rp131 trillion to international banks to solve the problem due to the falling oil revenues.

According to news agency Reuters, the world's biggest oil exporter trying to raise US $ 8 billion, but the high demand from the finance ministry to increase the number of loans required.

This is the first time Saudi uses the international market since the beginning of the 1990s when Iraq invaded Kuwait.

Entered the country's oil, which is the main source of revenue, down 23% last year.

Loans are expected to be signed at the end of the month, will help reduce dependence on Saudi banks in the country and overcome the insistence of the world related debt.

It would also pave the way for Saudi Arabia to issue international bonds.

The move comes just a few days after the meeting with the world's major oil exporters to negotiate a reduction in production, ended without agreement.

Source: detiknews