Banking

GCC government debt to surge by record-high $100 bln this year - S&P

Credit: REUTERS/STEPHANIE MCGEHEE

S&P Global Ratings said on Monday it expected Gulf countries' government debt to increase by a record-high of about $100 billion this year, as funding needs spike due to the coronavirus crisis and low oil prices.

DUBAI, July 20 (Reuters) - S&P Global Ratings said on Monday it expected Gulf countries' government debt to increase by a record-high of about $100 billion this year, as funding needs spike due to the coronavirus crisis and low oil prices.

The ratings agency estimates Gulf Cooperation Council (GCC) countries to register an aggregate central government deficit of about $180 billion.

"Based on our macroeconomic assumptions, we expect to see GCC government balance sheets continue to deteriorate up until 2023," it said in a statement.

(Reporting by Davide Barbuscia; Editing by Jon Boyle)

((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: davide.barbuscia.reuters.com@reuters.net))

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