Kuwait is studying several options and alternatives in order to support the liquidity of the country's general reserve and maintain its impermeability during that grinding crisis that the world has not witnessed since the financial crisis in 2008. < / p>
The budget committee of the Kuwaiti parliament on Tuesday discussed a long list of alternative sources of funding after the speaker of parliament said that the chances of approval of a proposed law on public debt are virtually nonexistent. < / p>
The Gulf country suffers from a sharp drop in the price of oil with the collapse of global demand due to the outbreak of the Corona virus emerging (Covid 19), which made it possible to find ways to allow increased borrowing More urgent.
The head of the Kuwaiti National Assembly budget committee expressed reservations about the proposed law that would make the maximum public debt 20 billion dinars (64.82 billion dollars), a statement said. Posted on Parliament website.
Among the alternative options discussed by Parliament is the suspension of transferring 10% of the state’s revenue to the reserve fund for future generations, ”committee chairman Adnan Abdel Samad said.
He added that 12 billion dinars have been transferred over the past five years to this fund. The only time Kuwait withdrew funds from the Future Generations Fund was during the first Gulf War.
Abdel Samad said that other sources of financing may come from the central bank, which can legally lend the government up to 1.5 billion dinars, and that the development fund can loan the government up to To 25% of its capital for housing projects.
Kuwait has announced measures to boost its economy in the face of the Corona pandemic, including long-term soft loans from local banks and the central bank's request of banks to facilitate the repayment of loans to affected companies. < / p>
