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Image used for illustrative purpose. Construction workers are seen on the site of a newly constructed bridge that is nearing completion at the Jahra roundabout in Kuwait City September 1, 2011. STR New, Reuters
Kuwait has decided to borrow between $10 - 20 billion this year to fund projects with a value of around $7.6 billion, an official has said.
Faisal Al-Muzaini, Director of the Public Debt Management Department at the Ministry of Finance, said the debt law which was approved by parliament in March allows the Ministry to borrow up to 30 billion Kuwaiti dinars ($99 billion) for a period of 50 years.
The debt expected during the 2025-2026 fiscal year ranges between KWD 3 billion and 6 billion ($10-20 billion), he said at a local debt forum on Monday.
“The time is right to use this tool to get the needed liquidity since the debt-to GDP ratio in Kuwait is only around 2.9 percent…this is a very low level compared with other countries,” he said in comments published by local newspapers on Tuesday.
He said no date has yet been set for borrowing in the current fiscal year but that the Ministry is now in the final stage of a borrowing plan.
Read more: Kuwait's projects activity to expand on the back of reforms and investment
(Writing by Nadim Kawach; Editing by Anoop Menon)
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