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NewsTranscript
00:00 It seems that the trust rating agencies this time are confirming their rating for Bahrain,
00:09 but they are also giving it a stable future view.
00:13 We will discuss the details related to the Moodle rating for Bahrain and giving it a B2 rating.
00:19 This is a high risk for this rating, and therefore it is due to a main reason,
00:25 which is the reflection of this future view of the debt burden of the Bahraini economy
00:33 and also the ability to measure the extent of the Kingdom's tolerance for these debts and the repayment of these high interests.
00:40 There is a future view, as we have said, that it may be stable for the economy.
00:45 Moving on to the other details that shed light on the Moodle agency,
00:49 there is a rise in the government debt burden of the Kingdom of Bahrain to a measurable level.
00:54 Thus, in 2023, it was 131% of the total debt,
01:01 and it is expected, according to this agency, to rise to 130% by 2025.
01:09 This is due to the recent rise in interest rates
01:15 in the strategy that the Bahraini Central Bank has adopted in relation to the US federalist movements
01:22 as a result of the dollar currency.
01:24 We also noticed a rise in interest payments in Bahrain,
01:29 with the absence of government plans.
01:31 Thus, in 2023, it was 26% of the government deposits,
01:38 and it is expected to rise to 29% of the government deposits,
01:43 if we are talking about interest payments.
01:46 The interest rates in Bahrain are now more than 6%.
01:50 These are considered high levels.
01:52 Returning to some other sectors that will be compensated away from oil,
01:58 we are talking about non-oil exports, which may also support the ongoing account of Bahrain.
02:03 In 2015-2020, we noticed a 4.8% deficit in the budget,
02:11 but the budget for 2023 recorded a deficit of 8.8% of the total local income,
02:24 which is a sign of the increase in the production of aluminum.
02:28 Moving on to the last sector that we will highlight,
02:31 which is the rise in foreign currency reserves.
02:34 In February 2024, it reached 4.1 billion dollars,
02:41 and this rise is a result of the rise in non-oil exports.
02:46 It seems that Moody's view of the Bahraini economy
02:51 is expected to increase the debt in the Kingdom,
02:54 and give a stable future view.