Skip to content
Subscriber Only

Arab States Face $94 Billion Debt Crunch on Oil Slump, HSBC Says

  • $52 billion of bonds, $42 billion of loans due this, next year
  • Refinancing challenging with slow growth, rating downgrades
Bloomberg business news

The Correlation Between Oil and Stocks May Last a While

Gulf Cooperation Council countries may struggle to refinance $94 billion of debt in the next two years as the region faces slowing growth, rising rates and rating downgrades, according to HSBC Holdings Plc.

Oil-rich GCC states have to refinance $52 billion of bonds and $42 billion of syndicated loans, mostly in the United Arab Emirates and Qatar, HSBC said in an e-mailed report. The countries also face a fiscal and current account deficit of $395 billion over the period, it said.