People are asking on Saudi deposits of $2 bn going out impact on PKR
Not much of an impact as the amount has to be paid by SBP - not banks, and potential replacement has been arranged. However, if nothing to replace it would have an psychological impact due to low reserves.
1/4
Not much of an impact as the amount has to be paid by SBP - not banks, and potential replacement has been arranged. However, if nothing to replace it would have an psychological impact due to low reserves.
1/4
Its important to note the timeline.
1. Saudi $1 bn roll over is due this Nov - not happening - ministry is saying that this is to replace by Chinese loan - similar price- as this is on 3.2% - this is almost Libor +3%.
2. Another $1 bn of Saudi is due to rollover in Mar 21 2/4
1. Saudi $1 bn roll over is due this Nov - not happening - ministry is saying that this is to replace by Chinese loan - similar price- as this is on 3.2% - this is almost Libor +3%.
2. Another $1 bn of Saudi is due to rollover in Mar 21 2/4
Its not certain on its rollover - chances are this to be paid back
3. More importantly, $2 billion from UAE is maturing in Jan 21. Nothing on its rollover yet - usually they follow the line of Saudi - govt should look for its replacement too. 3/4
3. More importantly, $2 billion from UAE is maturing in Jan 21. Nothing on its rollover yet - usually they follow the line of Saudi - govt should look for its replacement too. 3/4
4. Financial advisor for Euro Bond is to be finalized soon. Government should issue bonds to replace these.
5. There are foreign policy repercussions of such bilateral loans -for ex PM not attending Islamic Summit in Malaysia
6. Govt should build reserves on mkt based flows4/4
5. There are foreign policy repercussions of such bilateral loans -for ex PM not attending Islamic Summit in Malaysia
6. Govt should build reserves on mkt based flows4/4
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