Kuwait to Increase Foreign Borrowing
Kuwait to Increase Foreign Borrowing

Kuwait to Increase Foreign Borrowing

Kuwait to Increase Foreign Borrowing

Kuwait will increase its borrowing on international markets to plug a budget deficit resulting from low oil prices, the finance minister said on Tuesday.
The move comes after the Persian Gulf Arab state raised $8 billion last month in its first international bond issue, AFP reported.
“We will continue to be present in the international (debt) market but in a prudent, rational way,” Finance Minister Anas Al-Saleh told reporters at the Kuwait Financial Forum. “We will use all instruments, including bonds and (Islamic) sukuks. This will go side by side with enforcing reforms,” he said.
After registering a healthy surplus for 16 consecutive years, the Arab state posted its first budget shortfall of $15 billion in the 2015-2016 fiscal year following a slump in oil prices. Kuwait projected a deficit of $29 billion in the 12 months to March 31. The country is expecting a deficit of some $21.6 billion for the next fiscal year.
On top of its international bond sales, Al-Saleh said the government had raised domestic debt worth 2.2 billion dinars ($7.2 billion) in 2016-2017. The government also withdrew unspecified amounts from its reserves, estimated at $600 billion, to meet the budget deficit.
Al-Saleh said the government put forward a bill allowing the state to borrow up to 20 billion dinars ($65.5 billion) over the next five years.
Like other countries in the (Persian) Gulf Cooperation Council region (Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain, and Oman), oil-rich Kuwait has seen its main revenue stream hit hard by a prolonged drop in crude prices.

Short URL : https://goo.gl/EVlbuC
  1. https://goo.gl/TzhDqq
  • https://goo.gl/Kv8StW
  • https://goo.gl/1yyZIg
  • https://goo.gl/Eer0tw
  • https://goo.gl/2z2Oxa

You can also read ...

Saudi Arabia Facing Uphill Battles
Saudi Crown Prince Mohammed bin Salman’s Vision 2030 scheme...
The popular Tesla Model S is due to sell by the end of this month in China, at which point the price will go up about $20,900.
More than a week has passed since the US and China fired the...
Switzerland has the smallest ratio with 7.2% of GDP.
The shadow economy in Jordan accounted for 17.38% of the GDP...
The bankruptcy of investment bank Lehman Brothers on September...
The Bank of Italy revised its growth estimates down to 1.3% for 2018, and to 1% for 2019.
Italy's already weak growth forecasts were revised downwards...
German Cabinet Warned of Economic Risks
The chief of Germany’s central bank, Jens Weidmann, warned the...
Airbus, AirAsia Discussing $23 Billion Deal
The Malaysian airline, already the second-biggest customer for...
Pakistan Raises Key Interest Rate
Pakistan’s central bank on Saturday raised interest rates by...

Add new comment

Read our comment policy before posting your viewpoints