Huge Saudi Debt Expected To Increase Further

Middle East Newsline.com ^ | 01/07/02 | Staff Writer

[veronica]

Saudi Arabia's huge debt is expected to increase over the next year.

Gulf analysts said stagnating oil prices will make the kingdom one of the biggest debtor nations in the world. Riyad is expected to owe more than $200 billion by the end of 2002.

Already, the analysts said, Saudi Arabia owes $203 billion. The kingdom is expected to borrow another $12 billion during 2002.

A study by Saudi economist Ihsan Bu Hlaika said the kingdom turned into a debtor from the oil prices that first stabilized and then dropped during the 1980s. Hlaika said the kingdom has repaid only a small part of its domestic debt.

The study said Riyad is expected to record a $6.6 billion budget deficit for 2001. Saudi officials have maintained that the kingdom will not record a deficit for last year.

[College Repub]

That's a nice site. But the Lubavitch are one of the few sects that are zionist. Find me the SHAS zionist site.

[Itzlzha]

Couldn't happen to a nicer Country, or group of "people" (I use the term loosely where Islam is concerned).

If they think things are bad now...wait till ANWR gets going, and the Trial Lawyers get cases going against the Saudi Princes for their complicity in 9/11.

"Brother, can you spare a Dinar?"....

[weikel]

My understanding is that they are welfare parasites( donning flame retardant clothing).

[College Repub]

more or less...and that's my main beef with them. For all that welfare, they should at least be teaching zionism and nationalism to thier kids and in their yeshivas...*ALL* The sects, not just a few...

[College Repub]

They exploit Israel's parliamentary democracy to make huge demands upon Labor and Likud (whoever happens to be running things at the given time) in exchange for their political support. This is basicaly political extortion. If there was ever textbook proof that our system of democracy (that of a Federal Republic) and the 2 party system of control is best, all one has to do is look at the political setups of countries like Israel (and Italy and others for that matter). Fringe parties gain ridiculous amounts of control. On the other hand, a senator from South Dakota with little more than 100,000 votes controls the domestic agenda in the US, so I probably shouldn't be talking...

[weikel]

I support Israel but if it stops being secular it is doomed( fundis cannot fight or run a modern economy).

[weikel]

All power to Likud.

[College Repub]

Exactly. And secular doesn't mean atheist or non-relgious, as people often assume. The largest growing groups within Israel (that is, Israeli Citizens), are the arabs and the Haredi. Becuase they have tons of kids...

[College Repub]

Likud is good. Roughly equivalent to conservative republicans here. Labor roughly equal to liberal democrats...It'd be nice if 3rd parties didn't have the power they do there. I think there'd be less internal gridlock if Labor and Likud were running things fully.

[weikel]

I don't like dems(labor) I want Likud to run everything there.

[Parmy]

The money goes to supporting terrorists and their organizations, to begin with. Then they have to pay more to these clowns for protection.

Simple, no.

[College Repub]

That would be the ideal case. But like us, it's a democracy (well we're a republic, but you get my point)...gotta be fair.

[weikel]

Were not a republic anymore we have become a democracy as our founders feared originally suffrage was restricted to the upper class( to prevent the lower class from voting themselves other peoples money and in the long term causing the economic system to collapse ie socialism).

[College Repub]

But doesn't our use of the electoral system still technicaly make us a federal republic? Especialy since electors aren't required to vote with thier districts...

[weikel]

Technically yes but technically Rome was a Republic during the reign of Augustus.

[truth_seeker]

Currently 25 percent unemployment in the "kingdon." Yet they bring in Filipinos and Pakistanis for low-skill, and skilled craft workers.

And after over 60 years of oil income, and countless of their citizens university-trained in engineering and administration, they still bring in various westerners for those jobs.

Can't Saudi citizens work? They sure can terrorize.

[Cachelot]

According to the Wahabbi interpretation of the Koran, interest is forbidden, so it should be fairly easy for them to find justification on defaulting

Justification is one thing, but it may present some practical problems so long as they own large holdings in other countries. What if their creditors grabbed their real estate in London, for example?

[LN2Campy]

All that oil money for nothing and they still screwed up.
The Saudis couldn't arrange a gang-bang in a Mexican whorehouse.

[Roy Tucker]

I was being somewhat facetious. The Saudis pay interest they just call it commissions. They also borrow abroad where it is clearly stated that interest is payable. Many Muslims believe that it is not the paying of interest but usury is forbidden in the Koran. But don't be surprised if it becomes a rallying cry from the rabble-rousing fundamentalists.

My experience is that unless it is the specific borrower who defaults who also has assets overseas, then it is very difficult (as it should be)under US and international law to seize that property. If a Government defaults, it is hard to justify that you can seize some prince's real estate in London. Although given the interconnection between the Government purse and the royal family it would be a stronger case to make.

[Roy Tucker]

No, they might be good at that.