Bahrain Sells $2 Billion in Bonds to Cover Rising Fiscal Deficit

Bahrain sold $2 billion in three-tranche bonds to deal with its nearly $40 billion fiscal deficit.

The bonds sold on Wednesday came as the country deals with the country’s financial difficulties, which have grown over the coronavirus pandemic and the resultant low oil prices. The bonds were sold in seven year, 12-year and 30-year tranches.

Bahrain’s fiscal debt for 2020 alone is an estimated $4.4 billion, though it had budgeted for $2.1 billion, Reuters reported, with a deficit of 14% of gross domestic product, up from 5% of GDP in 2019.