Saudi government in talks with banks for additional borrowing

Saudi Arabia is weighing the option of increasing the size of its $10 billion loan secured in 2016, Bloomberg reported, citing people familiar with the matter.

The Kingdom could borrow another $5 billion as lenders are in talks with the government to increase the loan amount. No final decisions have been made and discussions may not result in a new deal, the report added.

Arranging new bilateral or club facilities with the banks is also being discussed.

In 2016, the Saudi government borrowed a$10 billion loan from banks including HSBC, JPMorgan Chase & Co. and Bank of Tokyo Mitsubishi UFJ – its first loan in 15 years.

The world’s top oil exporter plans to borrow about $31 billion this year to bridge an expected budget deficit of $52 billion and fund growth plans, the agency said.