A Kuwaiti government source told Reuters that this thing has not yet been accomplished, but it is one of the solutions proposed .. The matter was presented to the (government) committees and was discussed and it is One of the solutions.
He explained that this solution is closer to verification and can be done quickly because it only needs procedural steps to be implemented by the General Investment Authority, and it does not need the approval of Parliament stating that Government agencies are currently considering these measures.
Kuwait is suffering in the current fiscal year from a severe crisis in financing its fiscal deficit, which may be exacerbated by the large drop in oil prices and additional financial costs incurred by the government due to the emerging Corona virus crisis. (Coved 19).
As a result of the continuous withdrawal from the general reserve fund, which represents the closest sanctuary to the government, a large part of its liquidity has been drained, but the fund has illiquid assets that the government community is afraid to sell in The current time due to weak markets.
Safaa al-Hashem, chair of the Parliamentary Economic and Finance Committee, said yesterday, Sunday, that the General Reserve Fund has been depleted, leaving only 1.1 billion dinars (3.58 billion dollars). < / p>
As for the future generations fund, it represents the state’s sovereign fund through which hundreds of billions of dollars are invested for the benefit of future generations in the post-oil phase, and it was only used once because of Iraqi invasion of Kuwait in the early 1990s.
Kuwait currently deducts by law no less than 10% of its revenues annually for the benefit of the future generations reserve, which is managed by the General Investment Authority.
Kuwaiti newspapers said yesterday that the government agreed to transfer ownership of assets from the general reserve fund to the generations fund at a value of two billion dinars.
But the source indicated that the value of the assets that can be transferred will depend on their quality, indicating the need to ensure that these assets are priced and have returns.
He said that some of the assets may not be useful for transferring them to the reserves of future (future) generations. Some of the assets are not priced, or exit from them may be impossible or have a political nature, for example. .
