Kuwait – Decypha: Kuwait will address budget deficit occurred, as a consequence of low international oil prices, through increasing international borrowing.
After raising $8 billion from the first international bond issue in March, Kuwait plans to continue depending on that market “in a prudent rational way,” stressed Kuwaiti Minister of Finance, Anas Al-Saleh, during the Kuwait Financial Forum on 4th of April.
"We will use all instruments, including bonds and (Islamic) sukuks. This will go side by side with enforcing reforms," Al-Saleh said, according to AFP.
Saleh added that the government proposed a bill to allow borrowing up to $65.5 billion over the next five years.
Kuwait has witnessed the first budget deficit of $15 billion in fiscal year 2015/16, after completing 16 consecutive years of budget surpluses, as stated by Qatar Tribute.
The budget deficit, which is calculated at $29 billion from March 2016 to the end of March 2017, is expected to stand at $21.6 billion in fiscal year 2017/18.
By Decypha Editorial Team
