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Tue 15 Sep 2015 01:56 PM

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Kuwait to sell local currency bonds by year-end to meet deficit

Kuwait's parliament in July approved a state budget for the current 2015-16 fiscal year that envisages a budget deficit $27bn

Kuwait to sell local currency bonds by year-end to meet deficit

Kuwait plans to issue bonds denominated in local currency by the end of this year to help the Gulf Arab state bridge its budget deficit, the country's finance minister said on Tuesday.

No value for the issuance was given by Anas al-Saleh, who was speaking on the sidelines of a conference in Kuwait City.

Kuwait's parliament in July approved a state budget for the current 2015-16 fiscal year that envisages a budget deficit of 8.18 billion dinars ($27 billion) because of low oil prices.

However, the actual deficit may not turn out to be nearly as large. The size will depend on oil prices, while Kuwait has in the past often underspent its budget because of bureaucratic red tape and tensions between the cabinet and parliament that have slowed economic projects. This could also limit the deficit.

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