Font Size

- Aa +

Tue 31 Jan 2017 09:07 AM

Font Size

- Aa +

Kuwait projects $25.9bn budget deficit next fiscal year

Kuwait’s finance minister Anas al-Saleh said there was no time frame for planned international bond

Kuwait projects $25.9bn budget deficit next fiscal year
Kuwaits government projects a budget deficit of 7.9 billion dinars ($25.9 billion) in the new fiscal year starting on April 1, finance minister Anas al-Saleh said on Monday.

Kuwait's government projects a budget deficit of 7.9 billion dinars ($25.9 billion) in the new fiscal year starting on April 1, finance minister Anas al-Saleh said on Monday.

That forecast is after a contribution of 10 percent of revenues to the sovereign wealth fund, and conservatively assumes an average oil price during the year of $45 a barrel, Saleh said in a briefing on the government's economic plans. Brent crude oil is currently around $55 a barrel.

Spending is projected at 19.9 billion dinars next fiscal year and revenues at 13.3 billion dinars.

Anas al-Saleh added that Kuwait is continuing procedures to issue an international sovereign bond but could not give a time frame for a sale that’s expected to help cover the budget deficit.

The government planned to offer 3 billion dinars ($9.8 billion) in bonds to international investors at the beginning of 2017, Saleh said last November.

National Bank of Kuwait and investment firm KAMCO said they had been invited by the government to participate in the issue.

The projected budget deficit of 7.9 billion dinars in the new fiscal year starting on April 1 will be covered with reserves and issues of both domestic and international bonds, Saleh said at a briefing on the government's economic plans.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.