IslamicFinance.de

Bahrain has sent out a request for proposals to banks to arrange issues of US dollar-denominated conventional bonds and sukuk. Bahrain needs to raise external financing to plug a budget deficit caused by low oil prices, as the state struggles to build political consensus around planned austerity measures. Last month the cabinet approved a draft budget projecting a BD1.3bn (US$3.4bn) deficit for 2017 and a BD1.2bn deficit in 2018. Bahrain had a deficit of BD1.5bn in 2016. Bahrain is rated BB- by S&P with a negative outlook. The agency last month revised the outlook to negative from stable, citing Bahrain's weakening external asset and fiscal positions. Fitch followed suit, revising the country's outlook to negative but affirming its BB+ rating.