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#Business: Deteriorating Finances

The world’s largest oil exporter wants to raise at least $10 billion this week from bonds due in five, 10 and 30 years, people familiar with the plans have said.
That they are having to tap the market at all is testament to how far their finances have deteriorated. The budget deficit has swollen to the widest in more than two decades and the government has eaten into foreign currency reserves and been forced to raise about $63 billion from local bond sales. The state is cutting spending and salaries as part of Saudi Deputy Crown Prince Mohammed bin Salman’s unprecedented overhaul, which also includes a planned initial public offering of oil giant Saudi Aramco.
Officials including Minister of State Mohammed Al Sheikh promised investors to prioritize an economic transformation plan regardless of where the oil price goes, according to two attendees of the London leg of the roadshow. More than 60 bankers and investors gathered to hear the sales pitch in a ballroom at the Corinthia Hotel just off Trafalgar Square on Oct. 12.

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