KBA

GCC liquidity squeeze could spur reforms: MR Raghu – Low oil prices could result in deficit of 7.9% of GDP in 2015

Raghu pointed out that the recent fall in oil prices by over 61 percent since June, 2014 due to a host of factors such as shale oil revolution in US, OPEC decision to retain their output levels amid signs of tenuous demand growth had spilled over into the GCC financial system through banking channels, leading to spurts in overnight lending rate. Raghu added that GCC countries continue to be heavily reliant on hydrocarbon revenues, despite their diversification efforts. IMF expects...