Kuwaiti cabinet proposes new amendments to debt law, MP says

Kuwait is facing a liquidity squeeze

Kuwait waterfront.

Kuwait waterfront.

Getty Images/Tamer Gad

KUWAIT- The Kuwaiti government has proposed new amendments to the country's public debt law, including capping borrowing to maximum 60% of gross domestic product, the head of a parliamentary finance committee told Reuters.

The government presented the proposed amendments to the parliamentary committee on Monday, Ahmed al-Hamad said. Another proposed change regards the duration of debt: the government would like no maturity limit, he said, while the existing debt law has a maximum limit of 30 years.

Kuwait is facing a liquidity squeeze because of a standoff between government and parliament over the public debt law.

(Reporting by Ahmed Hagagy; Editing by Catherine Evans) ((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: davide.barbuscia.reuters.com@reuters.net))

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