Saudi becoming bankrupt  

Washington: Saudi Arabia, its enormous cash reserves depleted by the cost of the Gulf war, may seek large loans for the first time from international banks, says The Washington Post quoting knowledgeable diplomatic sources. The strain on Saudi finances has arisen because of war-related expenditure and pledges of support totaling $48 billion – half of the kingdom’s annual income – made since Iraq invaded Kuwait. The largest single portion of this extraordinary outpouring of funds went to the U.S., which was promised $ 13.5 billion for the first quarter of this year alone. (Hindu Feb. 14).