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RIYADH, Nov 28 (Reuters) - Saudi Arabia's government has decided to suspend its monthly issue of domestic bonds for November, the second month in a row that it has cancelled the debt sale, the Maaal financial news service quoted unnamed official sources as saying on Monday.
The government had been offering about 20 billion riyals ($5.3 billion) of bonds to banks every month since mid-2015, to help cover a budget deficit caused by low oil prices.
But a $17.5 billion international bond issue by Riyadh in October eased pressure on state finances, allowing the government to suspend its domestic debt issue that month and again this month, Maaal said.
It added that because the government had resumed releasing delayed payments to construction firm, liquidity in the banking sector was now good, so that banks would be able to absorb any local bond issues in coming months if they resumed.
(Reporting by Marwa Rashad; Writing by Andrew Torchia) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
The government had been offering about 20 billion riyals ($5.3 billion) of bonds to banks every month since mid-2015, to help cover a budget deficit caused by low oil prices.
But a $17.5 billion international bond issue by Riyadh in October eased pressure on state finances, allowing the government to suspend its domestic debt issue that month and again this month, Maaal said.
It added that because the government had resumed releasing delayed payments to construction firm, liquidity in the banking sector was now good, so that banks would be able to absorb any local bond issues in coming months if they resumed.
(Reporting by Marwa Rashad; Writing by Andrew Torchia) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
