Global Fixed Income
A New Era of Gulf Aid: Potential Winners and Losers
August 10 2023Key Insights
- Whether or not a country may receive financial assistance from the Gulf in a distressed situation will likely have important implications for their investment outlook.
- Gulf aid has evolved over time, and a clear
trend is the rise of conditionality, which means that countries have to
implement reforms in order to receive support.
- A framework developed to determine the likelihood of a country receiving financial aid shows that Bahrain and Oman are most likely, while Lebanon is least likely.
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