MPs approved a royal decree that raises Bahrain’s debt ceiling from BD7 billion ($18.5 billion) to BD10 billion yesterday (December 8), as it emerged the projected two-year deficit for 2015 and 2016 was now 50 per cent higher than expected because of low oil prices.

Parliament’s decision, which means the country can offset lower oil revenues through additional borrowing, was taken after MPs were told the combined deficit for both years could reach BD4.5 billion – BD1.5 billion more than previously anticipated, reported the Gulf Daily News, our sister publication.

To read further, please visit GDNonline.