PHOTO
MUSCAT, Oct 24 (Reuters) - Oman's government plans to cover between 60 and 70 percent of this year's budget deficit via international borrowing such as eurobond issues, direct placements of debt and other instruments, the central bank's executive president said.
The rest of the deficit will be financed locally by drawing down financial reserves, such as money held by the the State General Reserve Fund, a sovereign fund, and issues of sukuk, Hamood Sangour al-Zadjali told an economic conference on Monday.
The government posted a budget deficit of 4.02 billion rials ($10.5 billion) in the first seven months of 2016 compared with a deficit of 2.39 billion rials a year earlier, as low oil export prices slashed its revenues.
The original 2016 budget plan envisaged state expenditure of 11.9 billion rials and revenues at 8.6 billion rials. Officials said their 2016 economic plans assumed an average oil price of $45 a barrel.
(Reporting by Fatma Alarimi; Writing by Andrew Torchia) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
The rest of the deficit will be financed locally by drawing down financial reserves, such as money held by the the State General Reserve Fund, a sovereign fund, and issues of sukuk, Hamood Sangour al-Zadjali told an economic conference on Monday.
The government posted a budget deficit of 4.02 billion rials ($10.5 billion) in the first seven months of 2016 compared with a deficit of 2.39 billion rials a year earlier, as low oil export prices slashed its revenues.
The original 2016 budget plan envisaged state expenditure of 11.9 billion rials and revenues at 8.6 billion rials. Officials said their 2016 economic plans assumed an average oil price of $45 a barrel.
(Reporting by Fatma Alarimi; Writing by Andrew Torchia) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
