Oil Price fall Not to Impact Govt Spending
The drop in global oil prices should not affect the spending plans of oil-producing countries in the Middle East in the near-term given their large financial reserves, the head of the IMF's Middle East and Central Asia Department said on Friday.
The official, Masood Ahmed, told reporters that every oil producer in the region outside of the Gulf Cooperation Council and Bahrain were running fiscal deficits, and that the drop in prices would push those budget gaps even wider.
However, he said their sizable financial reserves would allow those countries to continue with their spending plans in the short-term, although the price drop has raised a longer-term issue.
(Reporting by Anna Yukhananov; Editing by Tim Ahmann and Paul Simao)