Saudi Arabia Considers Paying Contractors With IOUs
- Projected deficit prompts government to weigh alternatives
- Bond-like instrument would cover part of amount owed by state
Saudi Considers Paying Contractors With IOUs
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Saudi Arabia is considering using IOUs to pay outstanding bills with contractors and conserve cash, according to people briefed on the discussions.
As payment from the state, contractors would receive bond-like instruments which they could hold until maturity or sell on to banks, the people said, asking not to be identified because the information is private. Companies have received some payments in cash and the rest could come in the "I-owe-you" notes, the people said, adding that no decisions have been made on the measures.