State of economy laid bare as hopes of Saudi bailout dashed

“So, we’re in the hands of the brokers,” read the paper. “A few weeks ago, we revealed the Treasury was to arrange a £1,000 million loan from the IMF. Ministers were quick to deny it. They’d still hopes of the money from Saudi Arabia. Hence Crown Prince Fahad’s visit. But all he’d give is a reassurance the Saudis won’t suddenly take their cash out of Britain and so rock the pound. The loan shows starkly our economic position is a lot more serious than ministers have been willing to admit. The IMF is the last resort. It means we’ve tried every other source of borrowing. The IMF will insist the government makes a move towards balancing our books at home and abroad.”