The Saudis Purchase A Colony: Bahrain's $10 Billion Bailout By Gulf Neighbors

"Bahrain's slumping economy and mushrooming public debt have been given a fresh lifeline as Saudi Arabia and other Gulf Cooperation Council (GCC) allies have agreed to inject billions in order to stabilize the tiny island gulf nation and prevent a looming financial crisis.

In a move designed to keep Bahrain's currency from collapsing and to avoid a potential credit crunch, Saudi Arabia, Kuwait, and the United Arab Emirates have pledged to give Bahrain $10 billion — enough to meet its funding requirements as it attempts to eliminate its budget deficit by 2022.

Bahrain had faced the likelihood of defaulting on a $750 million Islamic bond repayment due on Nov. 22. and the IMF last spring warned its public debt represents 89 percent of its gross domestic product, while reserves are low..."

at https://www.zerohedge.com/news/2018-10-05/bahrain-given-10-billion-bailout-gulf-neighbors-ward-crisis