UAE Seeking $2 Billion in International Loans

The Abu Dhabi government is seeking a $2 billion in loan and has been in contact with several banks. This move has been in line to allow the oil-rich emirate to “tap new liquidity pools in an era of low oil prices.”

United Arab Emirates (UAE) capital, Abu Dhabi, gathered $10 billion for budgetary purposes and gathered almost $20 billion in demand after selling its latest international bonds in September of 2019.

The country is working on attaining government’s first-ever debt facility which is in the region of $2 billion; the authorities have termed it as a “self-arranged loan” and is putting together commitments from various banks.

Regarding this, the Abu Dhabi Department of Finance refused to comment on the matter and has maintained a silent stance since.

The reports said:

Previously in 2014 and 2015, Abu Dhabi reduced the public spending and increased dividends from state-owned entities after the oil prices dropped.

This led to a forecast of 27.2 billion dirhams in deficit for 2019, according to its latest bond prospectus.