Baahrain’s central bank may not be able to maintain the dollar peg. REUTERS/Hamad I Mohammed
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Access to a debt market teeming with yield-hungry investors is helping some cash-strapped nations in the Gulf Cooperation Council kick reforms down the road.Bahrain, the smallest of the GCC's six nations, tapped the international bond markets for $3.6 billion in 2017 .This isn't to say that Oman hasn't implemented reforms.Total expenditure in the 11 months through November 2017 is estimated to have climbed 8.5 percent from the previous year to 10.4 billion rials ($27 billion), according to the bond prospectus.The nation last year asked Gulf allies for financial help, according to people with knowledge of the talks.Bahrain implemented some measures to trim expenditure, mainly reducing subsidies and transfers, which lowered their contribution to total expenditure to about 25 percent in 2017 from 29 percent in 2014, S&P Global Ratings said in a report in December.
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