Financially desperate Saudi Arabia to hold giant yard sale to raise money to cover 2015 deficit.

By Rob Janicki
Okay, Saudi Arabia is not about to declare bankruptcy, but they do expect to have a significant deficit in revenues for 2015, compared to their fixed expenditures.  All this because of the precipitous drop in world wide price of crude oil due to lack of demand in a slowing world economy.

Hit by plunging crude prices, the world's biggest oil exporter will post a deficit of $106 billion, compared with a government projection of $39 billion, Saudi firm Jadwa Research said in a report released late Tuesday.

Again, Saudi Arabia is not about to go belly up and here's why.

Saudi Arabia has massive foreign reserves, which stood at $714 billion at end February, but Jadwa said borrowing would eliminate the need for the reserves to be the sole source of deficit financing.

I suspect that Saudi Arabia prefers to borrow some of the cheap money floating around the globe, rather than liquidate some of their foreign reserves which most likely are not all in cash.  No sense selling off any hard assets when cheap money is plentiful on the world money market.

For more details on the economic and financial plight of Saudi Arabia read Yahoo News here.