(MENAFN) Oman's Finance Ministry stated that after the Gulf nation utilized the international debt market with a USD2 billion bond sale, the country will have to employ new producers to keep its budget shortfall under control.
Documents published indicate that the shortage may amount to 16 percent of gross domestic product over the next five years, or OR5 billion (USD13 billion) yearly in the period 2021-2025. S&P Global Ratings has formerly predicted that the budget shortage could reach 18 percent this year.
The Finance Ministry revealed that public debt could rise to 130 percent of GDP in 2025. While the International Monetary Fund estimated that total government debt will be 78.3 percent of GDP this year, increasing to 85.8 percent in 2021.
The country was strongly impacted by Covid-19 outbreak, in addition to lower oil prices, and has announced they may need help from nearby Gulf countries. Oman is ranked junk by all three agencies.
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