When the infidel doesn’t pour free money into their lap, their Sharia finance doesn’t work one bit to help them manage their economy independently on their own. And their efforts to try and crash the US economy by dropping their rates so low was obviously one of the most stupid moves they could do, and boomeranged right back at the Barbarians.
Contractors should immediately pull out from any agreements with these savages and leave the country. They will never see their money if they proceed. In fact, under Sharia finance you are not allowed to borrow, lend or have IOUs, so how come they find it perfectly fine to try and finance themselves through debts by exploiting the infidel through agreements that violate Sharia? It merely means that all their IOUs will have no validity under Sharia and any efforts to get their money back will backfire because the Saudis will only listen to Sharia courts and nothing else.
This is a perfect time to dump all association with these savages and weaken the funding and expansion of terrorism to the lowest point since the Saudi Barbarians were handed free oil-contracts on a platter by a British loonie, whoms irrational and greedy decicions triggered the spread of uncontrollable worldwide terrorism with millions of lives lost – and Western economies folding like playing cards under the costly weight of Muslim migration.
Cash-strapped Saudi Arabia considers paying contractors with ‘IOUs’ as the nation continues to be hit by fall in oil prices
- Saudi Arabia is short of cash as oil price has fallen from $70 to $47 a barrel
- Riyadh has a massive budget deficit and is looking at ways to save money
- It is considering paying contractors with a form of ‘I owe you’ notes
Saudi Arabia is so short of cash because of plunging oil prices that it is considering resorting to handing contractors IOUs.
Bloomberg reports that contractors would receive financial instruments similar to a treasury bond which they could hold until maturity or sell on to banks for cash.
A source close to the Saudi government told Bloomberg some companies have received partial payments in cash and could receive the rest in a form of ‘I owe you’ notes.
No final decision has been made but the government in Riyadh is reportedly facing a massive cashflow problem after oil prices crashed from $70 to $30 a barrel.
The price of a barrel of Brent crude has recovered to $47 a barrel this week but the Saudis are still struggling financially.
Last year the state budget deficit was $98billion (£67billion).
Riyadh has slowed payments to contractors and suppliers, dipped into its foreign reserves and borrowed from banks.
The country is expected to record a budget deficit of about 13.5 per cent of economic output this year, according to International Monetary Fund estimates.
That will force the government to borrow an estimated 120billion riyals (£21.8billion).
An estimated nine million foreigners work in Saudi Arabia, including around 100,000 from Europe and the United States.
Opec will meet in Vienna on June 2 and all eyes will be on Saudi Arabia’s new oil minister, Khalid Al-Falih, to see whether he plans to reduce output to drive prices up again.
Last month Saudi Arabia announced a sweeping package of economic reforms and on Thursday the IMF said the kingdom was cutting spending at the right speed to cope with the huge budget deficit.
Deputy Crown Prince Mohammed bin Salman announced steps to reduce the kingdom’s dependence on oil exports over the next 15 years, including subsidy cuts, tax rises, sales of state assets and a government efficiency drive.
The IMF said today the plan reform plan was ‘an appropriately bold and far-reaching transformation of the Saudi Arabian economy’.
IMF official Tim Callen said: ‘The supporting policies that will be announced in the coming months are expected to set out how these goals will be achieved.’