Deutsche Bank: Bahrain has Less than Two Years’ Worth of Cash Reserves
2015-05-29 - 2:26 am
Bahrain Mirror: The Deutsche Bank stated that Bahrain has less than two years' worth of cash reserves left at current levels of spending.
According to The National Business, the bank highlighted that, "Both Bahrain and Oman have less than two years' worth of cash reserves to finance their budget deficit."
"Bahrain needs the oil price to return to $82 per barrel to break even" according to the Deutsche Bank.
Bahrain's government expects its budget deficit to climb to $3.9 billion this year, equivalent to 11.2 percent of the country's GDP. It also expects to run a deficit of 12.4 percent of GDP in 2016.
"Bahrain and Oman stand out as the Gulf states that most need to tackle their fiscal positions," said William Jackson, senior emerging markets economist at Capital Economics.
"They are the most dependent on high oil prices, they have the worst fiscal positions in the Gulf and they don't have the fiscal buffers needed to weather the low oil price," he further stated.
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